Yuan weakened, Chinese stocks still led up waves
Except for Japan, Asia’s major stock indexes all rallied in the morning session on October 12, although investors were still wary of the yuan’s fluctuations.
|Chinese stocks led up waves in Asia in the 12/10 session. Photo: AFP|
Chinese stocks benefited the most after the central bank’s regulatory adjustment last week. The Shanghai Composite Index rose 2.27% while Shenzheen Component rose slightly with 2.386%.
On the Hong Kong market, the Hang Seng index gained more than 2% while shares of Chinese banks listed in Hong Kong soared. In this group, shares of Industrial and Commercial Bank of China (ICBC) gained the most with a rise of 6.23%, followed by China Construction Bank (5.58%) and Central Bank Co., Ltd. National (4.18%).
Back after the holiday, Korean stocks today did not have big change with the Kospi index inching 0.46%. Meanwhile, Australian stocks rose slightly with the S & P / ASX 200 index edging up 0.1%. In contrast, Japanese stocks went against the region as the Nikkei 225 fell by 0.36% and the Topix index slipped 0.45%.
Overall, the MSCI Asia-Pacific Index (excluding Japan) rose 0.94%.
Stock investors in Asia today wary of the yuan’s movements after currency traders “under-sold” the yuan on concerns that the currency will slide, while traders other translators wait for the yuan to slide further to buy in and eat the difference.
According to Reuters, the Central Bank of China announced on October 10 that financial institutions in this country will not have to reserve cash when conducting foreign currency term transactions. This regulation takes effect from 12/10 today. Before, Chinese regulations Financial institutions are forced to set aside 20% of the yuan in term payments.
Domestic transaction yuan today October 12 weakened against the greenback to 6.7192 CNY for 1 USD, from 6.7 CNY / USD set up last week, while the yuan traded abroad converted 6.7177 CNY / USD.
National Bank of Australia specialist, Tapas Strickland, said that the weakening yuan due to recent regulations of China made investors fear the yuan depreciation.
The US dollar index against other major currencies also declined, from 93.3 to 93.093. Meanwhile, the Japanese Yen strengthened and converted 105.46 JPY to “eat” 1 USD compared to 105.9 JPY / USD set up last week, while the Australian dollar price inched up from 1 AUD / 0.71 USD. in the previous week to 1 AUD / 0.7227 USD.
Oil prices on the Asian market went down this afternoon. Futures price Brent oil slid 0.93% to $ 42.45 / barrel, while the US crude oil futures price dropped by 0.96% to $ 40.21 / barrel.