AFP, Hong Kong :
Asian markets fluctuated Friday as investors kept a wary eye on developments in the Evergrande debt crisis, while keeping an upbeat outlook for the global recovery outlook.
Investors struggled to track a surge on Wall Street that followed news the Federal Reserve planned to start tapering its vast monetary easing programme within months, which observers took as a signal of confidence that the world’s top economy is well on the right track.
A more hawkish tilt by the British and Norwegian central banks hinted at a similar outlook, while analysts said markets would likely end the year on a strong note.
Subsiding concern about the future of Evergrande added to the broadly positive mood, while hopes a US debt default could be averted also provided support.
Traders are keeping close tabs on the battered real estate firm, with no sign that it had paid interest to bondholders on a note due Thursday. Still, the firm has a 30-day grace period to stump up before it is considered in default.
Markets were sent spinning at the start of the week by fears that the company — one of China’s biggest developers in the crucial property sector — would go under and drag others with it, in turn jolting the domestic economy and possibly beyond.
However, an announcement that it had agreed a plan to stump up on a local bond payment soothed panicked investors, while they have also taken solace in expectations that Beijing will not let the firm completely go to the wall, instead stepping in to restructure it.
Regulators on Thursday urged the firm — which is more than $300 billion in debt — to do whatever was necessary to avoid a near-term default on its offshore bonds, concentrate on finishing building projects and repay individual investors.
There has been no definitive comment from leaders on how they intend to deal with the crisis, which is causing uncertainty on trading floors.
