Asian markets take weaker yuan in stride as stocks rise with won
By Bloomberg
Asian currencies stabilized after the biggest two-day selloff in four years as the yuan’s tumble eased. Emerging-market stocks rose after record earnings at Tencent Holdings Ltd. boosted technology companies.
The South Korean won jumped 1.5 percent and Malaysia’s ringgit rallied from a 17-year low at 9:55 a.m. in Hong Kong. The yuan slipped 0.7 percent to 6.433. The Bloomberg JPMorgan Asia Dollar Index was little changed after its biggest two-day selloff since 2011. The MSCI Asia Pacific Index added 0.2 percent, while U.S. equity-index futures were steady.
China’s decision on Tuesday to devalue the yuan and allow the currency to trade more in line with market movements roiled global assets, sending emerging-market currencies and commodities tumbling. The move has stalled the dollar’s advance and boosted the appeal of sovereign bonds amid speculation the deflationary impact may give the Federal Reserve pause as it considers the timing of its first interest-rate increase since 2006.
The won strengthened to 1,172.44 per dollar after the Bank of Korea held rates, cooling speculation that China’s policy shift would spark a round of devaluations around the region.
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!