Mainland China markets drop more than 1% on return to trade as investors watch for reaction to Evergrande crisis


SINGAPORE — Markets in mainland China tumbled on Wednesday, after returning to trade from a two-day holiday, falling more than 1% amid the ongoing Evergrande crisis.

With global markets selling off earlier this week, investors will be keeping a close watch on the China markets for any fallout surrounding the embattled developer.

The Shanghai composite fell 1.44% in early trade while the Shenzhen component dropped 1.606%.

Elsewhere in Asia, the Nikkei 225 in Japan hovered above the flatline while the Topix index shed 0.26%. The Taiex in Taiwan dropped 1.69%

In Australia, the S&P/ASX 200 edged 0.33% higher.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.3% lower.

Markets in Hong Kong and South Korea are closed on Wednesday for holidays.

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Overnight stateside, the Dow Jones Industrial Average dipped 50.63 points to 33,919,84 while the S&P 500 declined around 0.1% to 4,354.19. The Nasdaq Composite outperformed, rising 0.22% to 14,746.40.

Investors look ahead to the policy statement from the U.S. Federal Reserve, expected Wednesday stateside, for signals on when the central bank could taper its bond purchase program.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.187 after sliding from levels above 93.3 earlier in the week.

The Japanese yen traded at 109.43 per dollar, having strengthened form around 110 against the greenback earlier this week. The Australian dollar changed hands at $0.7262 following its decline yesterday from above $0.725.

Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 0.79% to $74.95 per barrel. U.S. crude futures gained 0.94% to $71.15 per barrel.



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