Some Respite On Evergrande Headlines, Although Coupon Payment Details Remain Murky

Equities came under some early pressure in Asia-Pac trade, with worry surrounding all things Evergrande remaining evident as participants awaited the re-opening of mainland Chinese markets after the elongated holiday weekend. There was some respite for broader risk assets as headlines noted that Evergrande will make a negotiated bond coupon payment for onshore bonds which falls due tomorrow, although no further details were forthcoming. There were no details re: the payment of coupons on a US$-denominated bond also due tomorrow (although there is a 30-day grace period in play there there), nor on the size of the payment that will be made when it comes to the onshore bond coupons. The lack of clarity tempered the broader bounce in risk appetite.

• Elsewhere, the PBoC upped its liquidity injections to aid the cyclical month-end tightness in money markets, which would have provided some incremental support for equities.
• China's CSI 300 sits a little over 1% lower on the day, but is off worst levels, while U.S. e-minis sit just above neutral levels. Note that Hong Kong observed a market holiday today.