Asian stocks were mixed today (August 14th) as China's currency stabilised after three consecutive days of devaluation. The yuan’s central parity rate stood at 6.401 yuan for $1 – unchanged from the previous day’s.
Investors were reassured when the institution reiterated that there was no basis for continued currency depreciation yesterday.
In a press conference in Beijing, it said the country's strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves remain "strong support" for the exchange rate.
The yuan fell about three per cent this week in a moved aimed at boosting Chinese exports.
"Market sentiments are noticeably more composed today," said Bernard Aw, a market strategist at IG. "However, there may not be any large positioning ahead of the weekend and any gains in the risk asset markets are expected to be modest."
Japan's Nikkei 225 edged down 0.3 per cent to 20,519.45 while Hong Kong's Hang Seng gained 0.1 per cent at 23,981.95. China's Shanghai Composite Index added 0.3 per cent to 3,965.64, while Australia's S&P/ASX 200 slid 0.5 per cent to 5,356.50. South Korea's market was closed for a holiday.
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