Asian markets wobble

Markets remain under pressure as concerns persist about the deceleration of the Chinese economy.

By Nadia Elbilassy | @Nadia Elbilassy | 20 February 2024

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  • Asian currencies declined due to concerns about a slowing Chinese economy, despite a larger-than-expected rate cut by the People's Bank of China.

  • The yuan reached its lowest level in three months at 7.2, while the dollar yen remained steady near 150.330.

  • Japanese stocks, represented by the Nikkei, closed lower by 0.10% at 38,363.

In Asia

Asian currencies declined fueled by ongoing concerns over a slowing Chinese economy. Despite the People's Bank of China making a larger-than-anticipated 25 basis points cut to its benchmark five-year loan prime rate, setting it at a historic low of 3.95%, Asian markets remained unimpressed and showed little enthusiasm in response to the move.

The yuan fell to 7.2 marking its lowest level in three months. Whilst the dollar yen remained steady near 150.330 as the anticipation of the BOJ’s highly dovish policy weighed on the yen.

Japanese stocks were also lower at the close with Nikkei down 0.10% to 38,363.

On the Calendar

Investors are closely monitoring the release of Canada's inflation figures today, as the USD/CAD continued its upward trajectory, reaching 1.35089. Additionally, attention is focused on Nvidia, which is scheduled to announce its earnings on today.

In the US

The 3 major indices futures edged lower in European trade. The S&P 500 continued trading below the $5000 handle before the opening bell later today.

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