Evergrande (HK:3333) (OTC:EGRNY) has failed to meet its obligations to bondholders. The company was unable to meet coupon payments for two different dollar notes on Monday. Up until now, the cumulative interest accrued to the company is $148 million. However, the company has been granted a 30-day extension to service its debt.
As of 11.03 p.m. EST, the Nikkei dropped 0.93% and the Shanghai index slumped 0.76%. The Hang Seng index, in Hong Kong, rose 0.86%. The ASX 200 index dipped 0.42% and the Seoul KOSPI dropped 1.31%.
As for the Nikkei Index, on the daily time frame, the price is trading below the 100-day SMA and also below the 50 and 200-day SMAs. This shows that bulls are no longer in control of the price. In addition, the 50-day SMA is about to cross below the 200-day SMA on the same time frame which is another sign of bears picking up more strength. Having said this, the RSI is trading near its oversold region which means that traders should adopt caution when placing any bearish bets.
