Stocks fall, Chinese yuan crosses level 7

Pedestrians cross a road past an electronic quotation board displaying company stock price numbers on the Tokyo Stock Exchange in Tokyo on May 13, 2021.

KAZUHIRO NOGI | AFP via Getty Images

Asia-Pacific stocks fell on Friday as investors assimilated U.S. economic data and China’s industrial production and retail sales figures for August, which beat expectations.

The Shenzhen component in mainland China briefly pared some losses after the data was released, but then extended losses to fall to 0.919%, and the Shanghai Composite was down 0.96%.

The offshore Chinese yuan weakened past 7 against the dollar overnight and last changed hands at 7.0191.

The onshore yuan also broke level 7 in Asian morning trade after the People’s Bank of China set the daily midpoint at 6.9305 against the dollar. It was last at 7.0088 to the dollar.

Japan’s Nikkei 225 fell 1.11% and the Topix index fell 0.62%.

In Australia, the S&P/ASX 200 fell 1.52%. The South Korean Kospi lost 1.24% and the Kosdaq lost 1.61%.

Hong Kong’s Hang Seng Index fell 0.42%.

MSCI’s broadest Asia-Pacific ex-Japan equity index was around 1% lower.

Overnight in the US, the Nasdaq Composite fell 1.43% to 11,552.36. The S&P 500 fell 1.13% to 3,901.35 and the Dow Jones Industrial Average fell 173.27 points, or 0.56%, to 30,961.82, its lowest close since July 14. .

“Equities and other risk-sensitive markets [will] struggle as it becomes clear that U.S. inflationary pressures are well entrenched and risks to the federal funds rate are on the upside,” analysts at ANZ Research wrote in a Friday note.

– CNBC’s Jesse Pound and Tanaya Macheel contributed to this report.

Comments are closed.