Stocks find some footing after Evergrande relief; Fed looms

Stocks find some footing after Evergrande relief; Fed looms

SINGAPORE: Stocks found support and U.S. futures lifted in relief on Wednesday after teetering developer China Evergrande said it would pay some bond interest due on Thursday, allaying fears of an imminent and messy collapse that had spooked investors. The news also helped the risk-sensitive Australian dollar, though anticipation that the Federal Reserve may move a step closer to tapering later on Wednesday kept a lid on gains and the mood. Markets in Taiwan and China reopened lower after a two-day break, catching up with a sharp sell-off around the world triggered by concern over Evergrande's predicament, but were soon paring losses as the payment promise buoyed the mood. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.3% lower mid-morning. Japan's Nikkei fell 0.6%, while Australian shares rose 0.7%. Hong Kong markets were closed for a holiday. S&P 500 futures reversed an early loss to trade slightly higher after Evergrande pledged to pay the scheduled coupon on a yuan bond that is due on Thursday. Safe-haven assets such as the yen and Treasuries also sold after the announcement. Evergrande is still due to pay $83.5 million in interest on a separate dollar bond, but the signal that it has