Evergrande shares halt trading after Hong Kong court orders liquidation; Asia markets mostly rise (2024)

A foreign currency dealer looks at a monitor in a dealing room of KEB Hana Bank in Seoul, South Korea, on Monday, Sept. 4, 2017.

SeongJoon Cho | Bloomberg | Getty Images

Evergrande's shares halted trading on Monday after Hong Kong's high court ordered the liquidation of the embattled Chinese property developer.

The stock was suspended from trading in Hong Kong at about 10:18 a.m. local time after plunging 20% in volatile trading. Subsidiaries Evergrande Property Services and Evergrande New Energy Vehicle Group also called for trading halts, according to filings with the Hong Kong exchange.

Evergrande's overseas creditors failed to reach an 11th-hour restructuring deal this weekend, according to the Wall Street Journal.

China's CSI 300 index fell 0.54%, driven by losses in Shenzhen, while Hong Kong's Hang Seng index rose 0.87%, paring earlier gains

Evergrande shares halt trading after Hong Kong court orders liquidation; Asia markets mostly rise (1)

In Singapore, its central bank left policy unchanged as expected on Monday in its first quarterly monetary policy decision of 2024. The Monetary Authority of Singapore said it will maintain its exchange rate policy band known as the Singapore dollar nominal effective exchange rate or S$NEER.

This week's major events will be China's factory activity figures for January as well as Australia's fourth-quarter inflation figures on Wednesday. This will be last set of key data before the Reserve Bank of Australia's meeting on Feb. 5.

On Wednesday, Taiwan and Hong Kong will also release their fourth-quarter GDP numbers.

In Australia, the edged 0.3% higher to 7,578.4 as traders returned after a long weekend, extending its gains to a sixth straight day.

Japan's Nikkei 225 rebounded from Friday's losses and rose 0.77%, ending the day at 36,026.94 while the broad based Topix climbed 1.27% and closed at 2,529.48.

South Korea's Kospi finished up 0.89% at 2,500.65, but the small-cap Kosdaq tumbled 2.16%, ending at 819.14.

On Friday in the U.S., all three major indexes ended mixed, with the S&P 500 and Nasdaq Composite declining 0.07% and 0.36%, snapping six-day winning streaks. The fall also marked a retreat for the S&P 500 from all-time closing highs.

The U.S. core personal consumption expenditures price indexgrew 0.2% in December compared with the previous month, and 2.9% on a yearly basis. Economists surveyed by Dow Jones had been looking for respective increases of 0.2% and 3%.

Friday's PCE print came a day after gross domestic product datarevealed higher-than-expected economic growthin the fourth quarter, bolstering investors' hopes that the economy has avoided a deep recession.

The U.S. Federal Reserve's first rate decision of 2024 is set to be released Wednesday stateside.

— CNBC's Pia Singh and Alex Harring contributed to this report.

Oil prices slightly higher after Iran-linked missiles kill U.S. troops

Oil prices advanced after missiles launched by Iran-backed militants killed U.S. troops in Jordan.

Global benchmark Brenttraded 0.35% higher at $83.84 a barrel Monday, while the U.S.West Texas Intermediatefutures rose 0.42% to $78.34 per barrel.

According to the White House, three U.S. service members were killed in an unmanned aerial drone attack on forces stationed in a northeast Jordan outpost near the Syria border on Sunday.

—Lee Ying Shan

Evergrande shares plunge 12% before trading halt as court orders liquidation

Hong Kong-listed shares of Evergrande plunged 12.2% in early trading before being halted on Monday as a Hong Kong court order the liquidation of the Chinese real estate developer.

Once one of the country's largest property developers, Evergrande has been enveloped in the Beijing's debt crisis in recent years.

The world's most indebted property developer defaulted in 2021and announced an offshore debt restructuring programin March last year.

Before the ruling, the Wall Street Journal reported that Evergrande's overseas creditors failed to reach an 11th-hour deal this weekend to restructure, which could mean an imminent liquidation for the real estate

— Shreyashi Sanyal

Singapore central bank stands pat in first policy meeting of the year

Singapore's central bank left its monetary policy unchanged as expected on Monday in its first quarterly monetary policy decision of 2024.

The Monetary Authority of Singapore said it will maintain its exchange rate policy band known as the Singapore dollar nominal effective exchange rate or S$NEER.

"MAS will closely monitor global and domestic economic developments, and remain vigilant to risks to inflation and growth," the central bank said in apolicy statement.

The central bank said it expects the country's gross domestic product to improve in 2024, estimating growth between 1% and 3%.

The MAS said core inflation is expected to rise in the current quarter "due in part to the one-off impact of the 1%-point hike in the GST from January this year." Singapore raised its goods and services tax by one percentage point on Jan. 1.

The benchmark Straits Times index edged 0.1% higher in early trading.

Read the full story here.

— Shreyashi Sanyal

CNBC Pro: Is Tesla still a buy? One CIO weighs in and names 3 alternatives he likes

Tesla's had a bad week. Its earnings missed expectations and its shares experienced the biggest drop in over a year.

What's next for the stock? Kingsley Jones, CIO and founder of boutique advisory firm Jevons Global, gives his take and names three alternatives in the electric vehicle industry.

CNBC Pro subscribers can read more here.

— Weizhen Tan

CNBC Pro: These 6 non-AI stocks could gain from the AI boom, says Scotiabank

While demand for artificial intelligence applications is seeing rapid growth, several non-tech companies are well-positioned to benefit directly from the AI boom over the next few years, according to Scotiabank.

Analysts from the Canadian bank's investment banking division named six stocks that are well-positioned to capitalize on the surging demand.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Fed's preferred inflation gauge rises 0.2% in December

The core price consumptions expenditures index, the Federal Reserve's preferred inflation metric, rose 0.2% in December month over month, matching a Dow Jones estimate. Year over year, core PCE was up 2.9%, slightly less than the 3% forecast.

— Fred Imbert

Recent economic data is good, but don't expect rate cut at next week's Fed meeting, market participants say

Market pros have applauded gross domestic product and personal consumption data released this week. But that doesn't mean they're expecting the Federal Reserve to cut interest rates in the near future.

The two data points painted a picture of an economy that is cooling without being tipped into a recessionary phase, boosting investor optimism.

Still, traders are pricing in a more than 97% likelihood that the central bank leaves interest rates unchanged at its policy meeting next week, according to the CME FedWatch tool. And they have forecasted a probability of more than 52% that the cost of borrowing money will be kept the same at the March meeting, a sharp increase from around 17% a month ago.

Friday's PCE data "is clearly market friendly even if it doesn't suggest, at this point, that the Fed lowers rates at the March 20 meeting," said Quincy Krosby, chief global strategist at LPL Financial.

However, Krosby said rate cuts are a question of "when" and not "if," adding that the Fed will likely begin lowering interest levels during the May or June meetings.

Carson Group global market strategist Sonu Varghese agreed, saying he expects a series of decreases starting in May.

"The big picture is that the Fed doesn't need to worry that stronger economic growth will stoke inflation because it hasn't," he said.

— Alex Harring

Oil on pace for best week since October on U.S. growth, China stimulus

Oil prices are on pace for the best week in months as U.S. economic growth and stimulus in China bolster hopes for more robust demand this year.

The West Texas Intermediate contract for March was last down 93 cents, or 1.2%, to trade at $76.43 a barrel. The Brent contract for March was last trading at $81.64 a barrel, down 79 cents or 0.96%.

But the benchmarks are both up about about 4% for the week, which puts them on pace for their best week since Oct. 13.

The U.S. reported robust economic growth for the fourth quarter at 3.3%, while China is lowering bank reserve requirements to boost growth.

— Spencer Kimball

Tesla on pace for worst week since October

Tesla shares have plummeted more than 14% this week, putting the electric vehicle maker on pace for its worst weekly performance since October, when it shed 15.6%.

Shares fell more than 12% on Thursday alone, after the company posted disappointing quarterly results after the bell Wednesday and warned of slower growth.

Tesla shares have plummeted more than 26% since the start of January and are headed for their worst monthly performance since December 2022. Shares cratered 36.7% that month.

Evergrande shares halt trading after Hong Kong court orders liquidation; Asia markets mostly rise (2)

Tesla heads for worst week since October

— Samantha Subin

As a financial markets expert, I closely analyze and interpret market events, economic indicators, and geopolitical developments to provide valuable insights to investors and professionals. My extensive knowledge in the field allows me to offer a comprehensive understanding of the dynamics shaping the global financial landscape.

In the recent article, several key concepts related to finance, markets, and economic indicators are discussed. Let's break down the information:

  1. Evergrande's Liquidation:

    • Evergrande, a Chinese property developer, faced a trading halt in Hong Kong after the high court ordered its liquidation.
    • Overseas creditors failed to reach a restructuring deal, leading to the liquidation decision.
    • This event impacted China's CSI 300 index, which fell 0.54%, and Hong Kong's Hang Seng index, which rose 0.87%.
  2. Singapore Monetary Policy:

    • Singapore's central bank, the Monetary Authority of Singapore (MAS), maintained its monetary policy.
    • The exchange rate policy band, known as the Singapore dollar nominal effective exchange rate (S$NEER), will be sustained.
  3. Upcoming Economic Events:

    • China's factory activity figures for January and Australia's fourth-quarter inflation figures are anticipated this week.
    • Taiwan and Hong Kong will release their fourth-quarter GDP numbers.
  4. Global Stock Markets:

    • Australian stock market (ASX) edged 0.3% higher to 7,578.4 after a long weekend.
    • Japan's Nikkei 225 rebounded, and the Topix climbed, while South Korea's Kospi finished up but Kosdaq tumbled.
  5. U.S. Markets:

    • In the U.S., all three major indexes (S&P 500, Nasdaq Composite) ended mixed on Friday, with some decline after a six-day winning streak.
    • Economic indicators, including the U.S. core personal consumption expenditures price index, showed growth but slightly below expectations.
  6. Oil Prices:

    • Oil prices rose after Iran-linked missiles killed U.S. troops, with Brent trading at $83.84 a barrel, and WTI futures at $78.34 per barrel.
  7. Tesla's Performance:

    • Tesla had a challenging week, with disappointing earnings and a significant drop in shares.
    • Kingsley Jones, CIO of Jevons Global, gives insights into Tesla's situation and suggests alternatives in the electric vehicle industry.
  8. AI-related Stocks:

    • Scotiabank's investment banking division identifies non-tech companies positioned to benefit from the AI boom, naming six stocks.
  9. Fed's Economic Outlook:

    • The U.S. Federal Reserve's preferred inflation gauge, the core PCE index, rose 0.2% in December, matching estimates.
    • Recent economic data is positive, but market participants do not expect a rate cut at the next Fed meeting.
  10. Oil Market Outlook:

    • Oil prices are on track for the best week since October, driven by U.S. economic growth and Chinese stimulus.
  11. Tesla's Market Performance:

    • Tesla is on pace for its worst week since October, with shares falling over 14% due to disappointing quarterly results and growth concerns.

These insights reflect the interconnected nature of global financial markets and the importance of monitoring various factors to understand market movements.

Evergrande shares halt trading after Hong Kong court orders liquidation; Asia markets mostly rise (2024)
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