Fake Asian stocks, due to Evergrande default

Asia Pacific stock markets fell on Friday morning, as the effects of China Evergrande Group (HK:3333)'s default continued to weigh. The COVID-19 omicron variant is also back in the spotlight, as investors assess its risks to the economic recovery.

China's Shanghai Composite was down 0.25% by 9:04 PM ET (2:04 AM GMT) while the Shenzhen Component was down 0.41%. China Evergrande and Kaisa Group Holdings Ltd. (HK:1638) has officially broken. Fitch Ratings rated China Evergrande as "restricted default" after it failed to make two coupon payments at the end of the grace period on Monday.

Meanwhile, the People's Bank of China raised the required foreign currency reserve ratio for the second time in 2021 after the yuan rose to its highest level since 2018, sending the offshore yuan lower. the most since July 2021.

Hong Kong's Hang Seng Index fell 0.30%.

Japan's Nikkei 225 fell 0.49% and South Korea's KOSPI fell 0.47%.

In Australia, the S&P/ASX 200 fell 0.45%.

Concern about Omicron is on the rise again after a study found it to be 4.2 times more transmissible than the delta variant in its early stages.

“Ultimately, the problem from a health perspective is that even if omicrons are shown to be less severe, as early signs have shown so far, an increase in transmissibility could be cause for concern. concerns,” Deutsche Bank (DE: {{352 | DBKGn} }) strategists including Jim Reid said in a note.

Meanwhile, US economic data, including the consumer price index, will be released later in the day.

The Fed, European Central Bank and Bank of England will deliver their policy decisions next week.

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