Asia equities are pressured following the tech sector sell-off on Wall Street. Several headwinds for global markets helped to drag the sentiment, including China’s Fantasia missing interest payments, US-China trade conflicts, China’s record incursion into Taiwan’s airspace, and higher gas/oil prices stoking inflationary anxieties.
The session ahead will be busy. Volatility in the global markets could extend the moves as liquidity is lacking as Chinese markets are closed for a week-long holiday. On the radar, China contagion fears rise amid Fantasia Holdings, another heavily indebted Chinese property developer, reportedly missed a USD 206mln debt payment yesterday. Traders might bring back some defensive plays for the coming days as China’s financial stability remains in question at a time when several economic activity metrics have been easing. The energy sector in the region could be the outperformer, with Oil prices surging to “highest-since 2014” levels after OPEC+ dodged diverging from its pre-planned 400.000 BPD November output hike. The regional tech sector could surfer following the sell-off yesterday in the sector stateside.
