Asia equities are trading lower after a red day on Wall Street due to lingering inflation and global growth slowdown concerns, as well as reports of a stronger Beijing crackdown.
Asia-Pacific traders wake up with news that could weigh on the tech sector. Reports note that China is investigating its financial services industry for “chummy” ties to private firms such as Alipay, DiDi, and Evergrande. The latter was missing more debt payments yesterday. In relevant news, Chinese property developer Sinic noted a likely default on 2021 bonds. Even though some investors are optimistic that Evergrande’s downfall does not represent an imminent threat to the global high-yield market, the significant deceleration in Chinese economic activity could continue to weigh on global assets.
On the commodity front, late reports noted Europe is drafting a “toolbox” for joint Nat gas buying in the bloc. Miners were well bid after metals prices surged further, with participants citing China production woes intensifying with fresh power shortages. For the week ahead, the calendar this week is busy, with US financials officially kicking off Q3 earnings season Wednesday. At the same time, US Consumer Price Index and retail sales data, alongside FOMC Minutes.
