US stocks slide over fears of China property giant Evergrande's collapse

US stocks sank on Monday over fears of collapse of Chinese property giant Evergrande.

The Dow lost 1.8 per cent and the S&P 500 indexfell 1.7 per cent. The grim performance at the stock exchange wasfurther fuelled by US inflation including surging COVID-19 infection and weakness in global recovery.

China'sEvergrande Group is the country's second-biggest property developer. It is battling a liquidity crisis as it looks for funds.

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There have been growing fears that it is set for a meltdown. However, the cash-strapped developer had told authorities earlier that it had begun repaying investors.

The group reportedly has over $300 billion in liabilities. Reports had claimed earlier that Evergrande had overdue debts even as it vowed to repay all of its matured wealth management products as soon as possible.

Meanwhile, stocks in Asia opened amid the turmoil caused by Evergrande. Hong Kong's Hang Seng Index saw a marginal gain of 0.2 per cent after it had plunged three per cent on Monday.

The stock market in Tokyo lost two per cent in early trade as markets in the Philippines and Indonesia also fell on Tuesday morning.

(With inputs from Agencies)