A look at the day ahead from Tommy Wilkes.
The troubles of over-indebted property giant China Evergrande may have been brewing for a long time but the muted reaction in markets internationally to the dramatic downturn in its fortunes has surprised some.
Investors, for now at least, seem to believe the fallout from Evergrande likely missing an $80 million bond coupon payment due next week can be contained, although bankers say things could get messy as the state steps in to sell assets.
Evergrande’s shares are down 35% this week but underlying the limited impact there were gains elsewhere in China on Friday, including in technology stocks.
The previously bruised Hang Seng Tech Index enjoyed its best day in three-and-a-half weeks, while broader Asian indexes are ending the week where they started.
Wider stock markets are more nervous about the economic outlook and, with a series of central…