Japanese Stocks Fall on Yen Support, Yuan Rebounds – Asia Market Wrap
Japanese equities fell and the yen climbed after the country’s top currency authority advised against speculative actions in the foreign exchange market. The yuan rose as Chinese authorities expressed support.
Tokyo’s Topix index fell as much as 1% after posting its largest weekly advance in two years. South Korea’s Kospi benchmark index also dipped, but Chinese and Australian equities edged up, painting a mixed picture of the region.
The offshore yuan strengthened as the dollar fell and China’s central bank announced a higher-than-expected daily reference rate. The difference between the yuan’s daily fixing and expectations was the biggest since November, while calculations showed that the People’s Bank of China injected a net 40 billion yuan ($5.56 billion) in open market operations.
Chinese Premier Li Qiang has previously downplayed investor concerns about the economy’s issues, stating that Beijing was increasing policy assistance to stimulate development and addressing systemic vulnerabilities.
