TOKYO (AP) — World markets were mostly lower Friday though Japan’s benchmark jumped as it caught up after a holiday.
Shares fell in Paris, London, Shanghai and Hong Kong but climbed 2.1% in Tokyo. U.S. futures also declined.
Worries over troubled Chinese real estate developer Evergrande and the pandemic are weighing on sentiment, analysts said.
Some Chinese banks on Friday disclosed what they are owed by Evergrande, seeking to dispel fears of financial turmoil as it struggles under $310 billion in debt. Evergrande’s announcement that it was making a payment due Thursday helped to ease some worries.
France’s CAC 40 slipped 0.9% in early trading to 6,641.43, while Germany’s DAX shed 0.7% to 15,531.38. Britain’s FTSE 100 edged down 0.3% to 7,059.54. U.S. shares were set to drift lower with the Dow future down 0.3% to 34,558.00. The S&P 500 future lost 0.3% to 4,423.25.
In Asian trading, Japan’s benchmark Nikkei 225 gained 609 points to 30,248.81. South Korea’s Kospi edged down nearly 0.1% to 3,125.24. Australia’s S&P/ASX 200 slipped 0.4% to 7,342.60. Hong Kong’s Hang Seng declined 1.3% to 24,192.16, while the Shanghai Composite lost 0.8% to 3,613.07.
Masayuki Tsunashima of Mizuho Bank warned risks remained for markets from the potential troubles at Evergrande. Prolonged coronavirus outbreaks also pose risks, he said.
“So, it cannot be ruled out that optimism remains fragile or, at the very least opportunistic as underlying risks have simply not been addressed, much less put to bed,” he said. “And this is consistent with markets remaining prone to volatility and negative shocks.”
Hong Kong-traded shares in China Evergrande New Energy Vehicle Group, its EV unit, dropped 22% and shares