The People’s Bank of China fixed the yuan at 6.3975 per dollar, slightly down on Thursday’s 6.4010 fix. After setting the guiding rate for its yuan currency lower for a third day, the central bank reportedly ordered state-run banks to buy the currency at designated rates.
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“It’s quite clear from yesterday’s PBoC press conference that it is not their main intention to depreciate the yuan sharply”.
After Tuesday, again on Wednesday for the continued second day the stocks in China dropped.
Oil prices declined as dollar-priced commodities became more expensive, weighing on demand.
But an afternoon comeback on Wall Street, led by Apple and energy stocks, and news China’s central bank had intervened to stop the yuan tanking on Wednesday cheered dealers.
Hong Kong added 0.60 percent and Shanghai rose 0.19 percent in early deals.
Japan’s Nikkei 225 was up by 1%, despite less than buoyant capital expenditure figures, while the nation’s core machinery orders fell by more than expected to 7.9% in June. Spark New Zealand fell 1.44 percent at NZ$2.73 and Fletcher Building dropped 0.39 percent to NZ$7.61. The underlying index slipped 0.1 per cent on Thursday. Market heavyweight Fast Retailing rallied 2.8 percent, chipmaker Tokyo Electron advanced 3.1 percent and security software provider Trend Micro jumped 5.2 percent.
Top-traded Semirara Mining and Power rose 1.96 per cent to 130 pesos, but BDO Unibank lost 1.92 per cent to 102 pesos and Manila Electric fell 2.09 per cent to 300 pesos. Shares halted trading ahead of a A$5 billion capital-raising. Citic Resources Holdings, which handles aluminium, coal, manganese and crude oil operations, gained 16.55 per cent to HK$1.69. Media firm Fairfax Media soared 4.9 percent after its full-year results beat market forecasts. 12 after the telecoms company said annual net profit fell one percent Aus4.
– Mumbai settled marginally higher by 0.14 percent, or 37.27 points at 27,549.53 points.
Other regional markets also lost ground, with Tokyo closing down 1.58 percent, or 327.98 points, at 20,392.77, while Sydney ended 1.66 percent lower at 5,382.10.
The South Korean won rebounded from the previous day’s tumble as investors bet that a weaker yuan will likely force the Fed to defer the interest-rate hike beyond September. The reductions came after China on Tuesday adopted a more market-oriented method of calculating the currency rate, widely seen as a devaluation, which sent ripples through global financial markets.
Wednesday’s decline accompanied weaker economic data for July.
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MSCI’s developing-nation stock index has fallen 9.2 percent this year and trades at 11.1 times projected 12-month earnings, data compiled by Bloomberg show.
