Equities

Asian stock markets closed lower as investors in the Asian region felt worried about the recovery from COVID-19, maintaining their focus on the latest developments on China’s real estate sector after Kaisa Group Holdings Ltd. and its Hong Kong-listed unit was suspended from trading.

The ASX 200 (-0.2%) declined as the fall in the financial sector offset gains in the technology sector.

The Nikkei 225 (-0.7%) fell amid the company’s earnings release.

Hang Seng (-0.1%), while Shanghai Composite (+0.2%) lacks a strong direction amid mixed headlines related to developers with Kaisa Group, said to be taking some steps to resolve liquidity issues and have applied for more time and patience from investors, while Chinese company Evergrande reportedly raised more cash by lowering its 5.7% stake in Hengten Networks to USD 145 million.

Commodities

WTI crude futures hovered around $ 81 a barrel on Tuesday following the approval of a USD 1.2 trillion infrastructure bill, strong Chinese export data, and global travel permits supporting a more positive outlook for oil demand.

Gold prices were firm above the $ 1,820 level amid rising inflation expectations coupled with Dovish’s statement from the central bank.

Forex

The US dollar fell from the 94.00 level as investors were cautious ahead of the US and Chinese inflation reports to be released on Wednesday.

The NZD continues to benefit from expectations of a RBNZ interest rate hike. The RBNZ is forecast to raise interest rates by at least 25 basis points at its November meeting.

In addition, the easing of lockdowns in Auckland has also given support to the NZD.

AUD under pressure amid debt crisis Chinese real estate companies re-emerged after Kaisa Group Holdings Ltd. and its Hong Kong-listed unit was suspended from trading.