Evergrande Dents Sentiment

Equity indices in the Asia-Pac time zone are in the red, giving back early gains and then some after sentiment took a hit following Evergrande headlines. There were reports that China Evergrande's Hong Kong equity listing, along with its property management unit's listing, will be suspended. There were also reports that Evergrande is a guarantor of a US$-denominated bond issued by Jumbo Fortune Enterprises. This $260mn bond matured yesterday (October 3), with the payment falling due today. The Hang Seng led the move lower, shedding ~2%, and other bourses in the region dropped into negative territory. U.S. e-mini futures gave up their early gains and now trade ~0.2% softer on the session.

• Liquidity was thinned today by market holidays in China and South Korea and widespread holiday's in Australia. Looking ahead Monday's U.S. docket will be headlined by Fedspeak from Bullard, with final durable goods data also due. Further ahead focus in the coming week turns to the nonfarm payrolls release for September, which could seal the Fed's intentions to taper asset purchases ahead of the end of 2021. Rate decisions from the Australian and Indian central banks are also due.