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China continues to set the mood for markets, and the tone is unswervingly sombre. Property boom poster child China Evergrande has filed for Chapter 15 protection in a U.S. bankruptcy court, putting an exclamation point on a torrid week for the real estate sector and stoking expectations that authorities will at some point leap to the rescue with bold stimulus. Such hopes may have bolstered Chinese property shares in the Asian morning, but the wider markets in China and the rest of the region were gloomy.

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