Asian markets tumble on second yuan devaluation
The Chinese currency is down 1.6 per cent to 6.3306 against the dollar.
Asian shares fell again today (August 12th) after China's central bank's second devaluation of the yuan this week. The People's Bank of China fixed the daily midpoint for the currency down 1.6 per cent to 6.3306 against the dollar.
The move, which comes after a first devaluation of the yuan yesterday, left investors worried about the implications for global markets.
The central bank said that exchange rates would now set according to movements in the market. However – in a bid to reassure investors - it added that there was no basis for a sustained depreciation of the yuan given global and domestic economic conditions.
The Chinese financial authorities are trying to revive the country's economy and support trade after fresh data revealed exports fell by 8.3 per cent in July.
Japan's Nikkei 225 index closed down 1.6 per cent at 20,392.77, South Korea's Kospi index was 0.6 per cent lower at 1,975.47 and China's Shanghai Composite share index dropped 1.1 per cent at 3,886.32.
Hong Kong's Hang Seng index ended 2.4 per cent lower at 23,916.02 and the Australian S&P/ASX 200 index tumbled 1.7 per cent to 5,382.10.
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