ProMASS News Bureau: Jan 7, 2016:
Asian stocks touched a three-month low early on Thursday as worries about the Chinese economy, reflected recently in a sharply lower Yuan, kept investors nervous.
Financial markets fear the Yuan’s rapid depreciation may mean China’s economy is even weaker than had been imagined, and could therefore spark another wave of competitive devaluations around Asia and in other key economies. Another cause shaking investor sentiment is the People’s Bank of China has set a weaker Yuan guidance rate for seven consecutive days, pushing offshore Yuan to its lowest level since trading started in 2010. Focus was on whether the People’s bank of china would set yet another lower midpoint for the Yuan later in the session.
The biggest fall is witnessed in Shanghai Composite which is down by almost 246 points that is almost by 7.32%. Hang Seng also witnessed a huge fall. It was down by almost 548 points. On the other side Strait Times is also down 1.65%, while Japanese Nikkei also took the brunt of Chinese situation. Nikkei is down by almost 371 points. SGX NIFTY too is showing a downward trend which means Indian markets on Thursday are set to open on a negative trend following these distressed cues.
