Asian stocks look set for a positive open, with Nikkei +0.32%, ASX +0.71% and KOSPI +0.19% at the time of writing. The Nasdaq Golden Dragon China Index was up 3.2% last Friday, digesting the recent fresh moves from China authorities to support the CNY and its housing market. China’s financial regulators have cut the down-payment requirements for first and second-time home buyers and lowered rates on existing mortgages – a move to provide some support for home sales demand as a bid to restore confidence, although much still awaits on how much impact it may eventually have.
On another front, Country Garden’s recent success in buying some time from its creditors for its 3.9 billion yuan onshore private bond could provide some support for Chinese equities to start the week, although past lessons from China Evergrande suggests that any extension could be just a near-term reprieve, with the lack of an eventual resolution still a headwind for risk sentiments eventually.
