On Sept. 7, Japan's Nikkei 225 closed up 1,378.90 points (+2.12%) at 66,399.84. South Korea's KOSPI closed up 308.19 points (+4.61%) at 6,995.4.

Tim Church, head of Morgan Stanley’s Australia investment banking, said at an Australian Financial Review property summit that the insolvency of Sydney residential developer Bathla will have material economic effects and could curb consumer spending as house prices fall. Bathla is negotiating with creditors after becoming insolvent amid slowing sales and rising construction and financing costs; it had borrowed heavily from the private credit market. The country’s securities regulator last week called the situation extremely complex. Church said there is no doubt this exposes cracks in private credit and does not look like good capital management; he expects Australian house prices to fall roughly 15% peak-to-trough.

Hang Seng Index (HSI) closed down 237.75 points, or 0.93%, at 25,413.12 on Monday Sept. 7. Hang Seng Tech Index closed down 42.09 points, or 0.92%, at 4,527.71. Hang Seng China Enterprises Index (HSCEI) closed down 125.30 points, or 1.46%, at 8,429.73. Red Chip Index closed down 37.01 points, or 0.88%, at 4,176.45.