The risk appetite is returning to Asia this Friday after China Evergrande makes a payment of $83.5 million in lieu of the bond interest, Reuters reports, citing China’s Securities Times.
The indebted Chinese property development giant made the payment on Thursday, October 21.
Further, Reuters reports, citing a source, that Evergrande wired funds to a trustee account for a bond interest payment, which was due on September 23.
The payment of the bond interest rescued the property giant from a formal default, helping save the face of the Chinese authorities ahead of the country’s biggest annual political event.
Another $45m payment is due on October 29, which was also due late September with a 30-day grace period.
Investors cheered this encouraging news, as the Asian stocks extended the gains while boosting the riskier currencies across the fx board.
AUD/USD jumped to test daily highs at 0.7490, adding 0.25% on the day. The S&P 500 futures post small losses so far this Friday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.