Asian Markets End Bull Run, Yuan Hits 2024 Low – Asia Market Wrap

Asian stocks fell as investors questioned if the recent surge in technology, which has powered a major benchmark to over two-year highs, could continue. At its lowest point this year, the offshore Yuan declined.

The weakest regional equities were headed by Chinese and Japanese stocks. After rising 1% on Wednesday due to fresh hope for artificial intelligence, the MSCI Asia Pacific Index dipped as much as 0.4%. The Hang Seng Tech Index fell more than 1%, reflecting the weakness of the region’s technology stocks. S&P 500 futures continued to rise.

The PBoC’s setting of the Yuan’s daily reference rate was the weakest since November, indicating a potential relaxation of monetary policy. After plunging over 158 against the dollar over the course of five sessions, the Japanese Yen fluctuated between gains and losses.

The second-largest economy in the world is facing negative sentiment, which is reflected in the Yuan’s depreciation. At the same time, the bond market is rallying as investors look for safe haven assets. Expectations of additional stimulus combined with conflicting economic data have caused yields to fall to or near record lows.