FXStreet (Mumbai) – Most Asian stocks turned in to the positive territory on Thursday after two back to back sessions of losses amid Yuan fix uncertainties led risk-off moods. Asian markets breathed a sigh of relief as traders now are getting accustomed to China’s new currency regime. However, the gains were capped as markets continue to digest the new FX development.
PBOC devalued its currency for the third consecutive day on Thursday, setting the USD/CNY fix at 6.401, 1.1% higher than the previous fix.
Risk-on returns as dust settles over Yuan fix
What came in as respite to markets was PBOC’s Yi Gang briefing on the yuan, where he talked up the currency and stated that further bid depreciation in the domestic currency is unlikely. Risk-on flows returned to equities following Gang’s comments.
The Japanese benchmark Nikkei 225 is gaining 0.85% at 20562. The benchmark Australian S&P/ASX 200 index
trades 0.56% higher at 5412 points supported by the big banks and some of Australia’s largest miners. While Korea’s benchmark Kospi index reversed losses and now advances 0.44% to 1,984 points in Seoul. The Bank of Korea kept the benchmark rate at a record-low 1.5% on Thursday.
Chinese stocks ditched its other Asian counterpart and remained in red. Hong Kong’s benchmark Hang Seng index trades flat at 24890 while mainland China’s benchmark Shanghai Composite loses -0.83% now and trades near 3854.
(Market News Provided by FXstreet)