JSE faces firmer Asian markets on Friday, as Evergrande reportedly makes bond payments

The JSE could be in store for a recovery on Friday morning, opening to marginally firmer Asian markets, amid reports that Chinese property developer Evergrande has avoided default by remitting the funds needed ahead of a looming deadline bond payments

Evergrande, which is choking on a $300bn debt pile, had slumped more than 12% on Thursday after a $2.6bn deal to sell a stake in its management services arm was halted, raising concerns it would not be able to service payments on its dollar-denominated bond by Saturday, and would be in default.

Emerging-market currencies were also under pressure, even as the JSE had its worst day in a month, after Turkey’s central bank surprised the market with a 200 basis point cut, taken as a signal by investors of a loss of independence for policymakers.

The central bank has been under pressure from President Recep Tayyip Erdogan, who has replaced its leader several times in the past year and has been pushing it to cut interests rates to boost lending and promote investment and economic growth.

In morning trade the Shanghai Composite had added 0.1%, the Hang Seng 0.44%, and Japan’s Nikkei 0.68%.

Tencent, whose shares can influence the JSE via the Naspers stable, had gained 1.09%.

Gold was up 0.25% to $1,787.83/oz, while platinum was 0.21% higher at $1,053.27/oz. Brent crude was 0.74% lower at $84.12 a barrel.

The rand was 0.23% firmer at R14.63/$, having slumped almost 2% on Thursday.

The JSE had lost 1.25% on Thursday, its worst day in a month, and will need to gain about 1.5%, or 1,000 points, to finish the week on a positive note.

The local corporate and economic calendars are bare on Friday.

gernetzkyk@businesslive.co.za