ASEAN markets cautious as China's real estate crisis worsens

Investors are in a state of uncertainty as growing fears of a further economic slowdown cause their sentiment to weaken. They believe China's rate cuts are insignificant and will help the economy only marginally in light of ongoing problems in the real estate market.

Assets in Southeast Asian countries fell on Friday as investor confidence cooled due to fresh problems in China's real estate market. There are fears of a further slowdown in the economy, which could affect trade and tourism in the region.

The Chinese company Evergrande Group's bankruptcy filing in New York on Thursday raised concerns about possible bankruptcies of other real estate developers, including the largest, Country Garden Holdings, which is in a liquidation crisis and is not paying interest on two international bonds.

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