However, nerves are still frayed as the property giant faces a payments test on Thursday
A man wearing a protective mask walks past an electronic board displaying Japan’s Nikkei index outside a brokerage in Tokyo, Japan, on September 21 2021. Picture: REUTERS/KIM KYUNG-HOONAsian shares made cautious gains on Thursday, supported by some positive news from cash-strapped developer China Evergrande Group, while the dollar held near a one-month high after the US Federal Reserve took a hawkish tilt overnight.
“You’ll see some of the immediate fears of a huge collapse and contagion start to recede, but it will still be an issue that pops up because the property market and construction is such a massive part of the Chinese economy.” Elsewhere, Chinese blue chips gained 0.7%, Australia’s benchmark rose 1%, and South Korea’s Kospi fell 0.6% after returning from a three-day break to catch up with global falls earlier in the week. Japan equity markets were shut for a holiday.Fears that Evergrande could fail to meet its obligations jolted global markets early this week as investors worried about the spillover effect on banks and property firms from the giant developer defaulting on its debt mountain.
In another key event for markets, the Fed said overnight it would likely begin reducing its monthly bond purchases as soon as November and signalled interest rate increases may follow more quickly than expected.
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