Japanese stocks fell,
following global equities lower, after China’s devaluation of its
currency heightened concern about slowing growth in the world’s
second-largest economy and damped the outlook for exporters.
The Topix index
declined 0.3 percent to 1,682.55 as of 9:01 a.m. in Tokyo, with all but
eight of its 33 industry groups falling. The Nikkei 225 Stock Average
slid 0.3 percent to 20,650.18. The yen rose 0.3 percent to 19.54 per
yuan in offshore trading after yesterday strengthening the most since
December after the biggest yuan devaluation in two decades. The move
stoked fears of a new currency war and sparked a sell-off in global
shares.
China’s policy shift
follows economic reports this month that showed a plunge in overseas
shipments, weaker-than-estimated manufacturing and slowing credit
growth. The move to support exporters and stem the deepest economic
slowdown since 1990 heightens the risk of competitive currency
devaluations as global demand wanes.
China reports retail
sales and factory output Wednesday, which may provide further clues on
the extent of the slowdown. Minutes of the Bank of Japan’s most recent
meeting are also due.
Futures on the
Standard & Poor’s 500 Index rose 0.2 percent after the underlying
measure slumped 1 percent on Tuesday in New York. Carmakers and
luxury-goods producers slipped, with the yuan’s steepest decline in at
least 20 years seen as eroding the buying power of Chinese consumers.
The Europe Stoxx 600 Index fell 1.6 percent. Emerging-market stocks
entered a bear market.
Source: Bloomberg
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