Chinese language property shares fall, developer Kaisa shares halted

SINGAPORE – Asia Pacific stocks were mixed in Friday’s trading as Hong Kong stocks detracted from major markets in the area.

Hong Kong’s Hang Seng index lost 1.6% in early trading. Mainland China stocks also fell, with the Shanghai composite falling 0.37% while the Shenzhen component lost 0.14%.

Chinese property developers’ shares in Hong Kong fell. China Evergrande Group lost 1.27% while China Vanke fell 0.58% and Sunac China Holdings dropped 4%. The Hang Seng Properties Index was 0.9% lower.

Trading in Hong Kong-listed shares of the Chinese real estate developer Kaisa Group and several of its units was suspended on Friday, according to stock exchange reports.

It came after Kaisa Group announced Thursday that its finance department missed a payment for an asset management product, according to Reuters. Kaisa is the second largest issuer of US dollar-denominated offshore high-yield bonds among Chinese developers, according to Natixis. Evergrande comes first.

Investors have been watching developments in China’s real estate sector amid the ongoing impact with companies like debt-ridden Evergrande missing out on more than one interest payment on its offshore bonds.

Mixed Asia Pacific Markets

Elsewhere, Asia Pacific stocks were mixed as South Korean Kospi fell 0.8%. Stocks in Japan also fell as the Nikkei 225 lost 0.64% and the Topix index lost 0.73%.

The S & P / ASX 200 in Australia gained 0.54%.

MSCI’s broadest index for Asia Pacific stocks outside of Japan was down 0.33%.

Record highs on Wall Street

Overnight in the US, the S&P 500 climbed 0.42% to 4,680.06, another record closing high. The tech-heavy Nasdaq Composite also rose 0.81% to an all-time closing high of 15,940.31. The Dow Jones Industrial Average lagged, shedding 33.35 points to 36,124.23.

The gains on Wall Street came after the Federal Reserve announced on Wednesday that it would cut its bond-buying program later this month.

Oil prices rise by about 1%

Oil prices rose on the morning of Asian trading hours, with international benchmark Brent crude oil futures rising 1.13% to $ 81.45 a barrel. US crude oil futures rose 1.33% to $ 79.87 a barrel.

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The US dollar index, which tracks the greenback versus a basket of its competitors, hit 94.358 after a recent surge from below 94.0.

The Japanese yen was trading at 113.66 per dollar, stronger than it was above 114 yesterday against the greenback. The Australian dollar was trading at $ 0.7386 and struggled to rebound from falling above $ 0.75 at the start of the trading week.

– CNBC’s Evelyn Cheng contributed to this report.

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