Asian shares down as Evergrande debacle persist

Asian shares dropped on Monday amid worries over China’s property sector and inflation concerns. These uncertainties clouded upbeat U.S. data and positive news on new drugs that could help fight against COVID-19.

Trading in shares of the overleveraged China Evergrande was put on hold when the property giant missed a key interest payment on its offshore debt obligation for the second time during the previous week.

Going over to stocks, MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.3%, marking the index’s first quarterly decline in six quarters.

In Hong Kong, the Hang Seng Index took a 1.9% loss, while the Japanese Nikkei lost its earlier gains and fell 1.4% lower at one-month lows of 28,375.

Markets in mainland China will be shut until Thursday in observance of the National Day holiday, while South Korean markets were also closed on Monday.

In related news, MSCI’s broadest gauge of world shares, ACWI, inched down 0.1% to 711.92.