Asia report: Markets mixed as another Evergrande debt deadline passes

Markets in Asia finished in a mixed state on Thursday, after data showed factory activity in China unexpectedly contracting in September.

In Japan, the Nikkei 225 was down 0.31% at 29,452.66, as the yen strengthened 0.04% on the dollar to last trade at JPY 111.92.

Uniqlo owner Fast Retailing jumped 4.3%, while among the benchmark’s other major components, robotics specialist Fanuc was down 0.87% and technology giant SoftBank Group lost 3.04%.

The broader Topix index was 0.4% weaker by the end of trading in Tokyo, closing at 2,030.16.

On the mainland, the Shanghai Composite was up 0.9% at 3,568.17, and the smaller, technology-centric Shenzhen Composite jumped 2.04% to 2,395.05.

Those rises came despite the official purchasing manufacturers’ index coming in at 49.6 for September, below the 50-point mark that separates expansion from contraction.

It was also below the 50.1 reading pencilled in by analysts polled by Reuters.

The unofficial Caixin/Markit manufacturing PMI, which is more reflective of small-to-medium business in the sector, rose to 50 for September, from a contractive 49.2 reading in August.

South Korea’s Kospi advanced 0.28% to 3,068.82, while the Hang Seng Index in Hong Kong slipped 0.36% to 24,575.64.

Debt-choked property development giant China Evergrande fell 3.91% in the special administrative region, after another due date came and went on its bonds.

According to Reuters, bondholders claimed they did not receive the coupon payment due by the end of the day on Wednesday.

That added to the consternation caused by the company’s silence on a bond debt payment that fell due last Thursday.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics flat, while SK Hynix rose 3%.

“Asian stocks were mixed on Thursday as investors evaluated the likely impact of surging global energy prices and weak economic data from China,” said FXTM senior research analyst Lukman Otunuga.

“Despite the lingering caution, easing concerns revolving around the China Evergrande situation soothed some jitters.

“A sense of calm has certainly returned to financial markets following the heavy sell-off across equities witnessed earlier in the week.”

Otunuga added that it still highlighted how markets remained highly sensitive to rate hike expectations and inflation.

“With a cavalry of US policymakers, including Fed Chairman Jerome Powell scheduled to speak today, markets could be injected with a fresh dose of volatility if more clues are offered about the path for the Fed tightening cycle.”

Oil prices were higher as the region went to bed, with Brent crude last up 0.37% at $78.93 per barrel, and West Texas Intermediate rising 0.4% to $75.13.

In Australia, the S&P/ASX 200 was 1.88% firmer at 7,332.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was 1.19% higher at 13,275.76.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.39% at AUD 1.3882, and the Kiwi advancing 0.09% to NZD 1.4549.