Hong Kong (CNN Business)Asian stocks mostly tumbled Tuesday following the US market sell-off, as tech and property dragged.
Japan’s benchmark Nikkei (N225) slid as much as 3.5%, taking the drop from recent record highs to 10%, which put the market briefly in a correction. It later pared losses to 2.5%. Fast Retailing (FRCOF) sank 6.6%. Z Holdings, which owns Yahoo Japan (YAHOF), lost 5.8%.South Korea’s Kospi (KOSPI) fell 1.7%, and is set to record its biggest drop in nearly two months.
Hong Kong’s Hang Seng Index (HSI) lost as much as 1.4% earlier in the morning, with tech and property shares being the worst performers. But it reversed losses and moved up 0.3%, as energy shares surged, offsetting losses by other sectors.
The Hang Seng Tech Index underperformed, down 0.2%. Alibaba (BABA) dropped 1.6% to its lowest level since it listed in Hong Kong two years ago.Read MoreProperty shares also fell heavily in Hong Kong amid Evergrande’s trading halt, as contagion fears grow that Evergrande’s debt woes could spread to China’s entire property sector.
5 things to know about the Evergrande crisis: A simple breakdownFantasia Holdings, a Chinese real estate developer, announced late Monday that it missed payment of a maturing bond. The company’s shares were halted from trading on Tuesday. Country Garden Holdings, China’s second largest developer by sales, lost 2.6%.Its property management unit — Country Garden Services — dropped 2.8% separately, after the firm said that Fantasia had failed to repay a company loan and it’s “probable” Fantasia will default.
Worries surrounding Evergrande’s debt woes dented Hong Kong stocks on Monday, after the property giant was suspended from trading, pending an announcement about a major transaction. The firm missed at least two bond interest payments in the past few weeks. Overnight, the US market closed sharply lower as investors grappled with inflation and debt ceiling concerns. Tech stocks led the losses, as the Nasdaq Composite (COMP) fell the most among major indexes with a 2.1% decline. Facebook (FB) lost nearly 5% following an outage across its platforms. The company’s services started coming back later in the day.
Source: edition.cnn.com