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Asian stocks trade mixed, PBOC halts Yuan devaluation

FXStreet (Mumbai) - Asian indices traded mixed on the last trading day of the week, as traders digest the latest PBOC price action in the currency markets, halting the yuan devaluation after three consecutive days of decline.

The USD/CNY rate was set 0.05% lower at 6.3975 for the first time in four days.

Little impact of the Chinese fix

China's central bank created havoc in the markets this week, by the sudden yuan devaluation by PBOC on Tuesday had largely ended by Thursday as Chinese authorities came to the markets’ rescue and noted that the yuan devaluation process was completed and big fall in Yuan are unlikely. While on Friday, the central bank’s move is likely to bring a calm end to this rocky week.

The Japanese benchmark Nikkei 225 is down -0.17% at 20560. The benchmark Australian S&P/ASX 200 index trades flat in to closing hours at 5388 points supported by the big banks while resource stocks limiting the upside. While Korea's benchmark Kospi index wiped-out gains and now trades muted at 1,984 points in Seoul.

Chinese stocks kept the opening gains and climbed further with the Hong Kong's benchmark Hang Seng index gaining 0.27% at 24088 while mainland China's benchmark Shanghai Composite up 0.40% now and trades near 3970.

USD/CNY: A tad lower near 6.3985

The USD/CNY pair opened at 6.3990 post PBOC yuan fix announcement, dead flat from Thursday’s close at 6.3990. At the moment, the pair trades at -0.01% lower at 6.3983, having struck lows at 1.3980 and high at 6.4020.
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Speaking at an Economic Society luncheon in Brisbane on Friday, RBA Head of economics, Dr. Christopher Kent noted that a combination of falling immigration, slower wage growth and a shift towards the services sector explains why unemployment is holding reasonably steady. However, a key concern has been lower wage growth.
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