‘Tsunami of Risk Aversion’ Ripples Through Asian Stock Markets
- Yuan fixing narrows regional losses, reverses U.S. futures
- Biggest worry now is overexposure to risks: Purple Asset
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Asian stock investors woke up to another day of market slumps after salvos from the U.S. and China in their ongoing trade war. Declines were tempered by mid-morning after China set its yuan reference rate stronger than analysts expected.
China’s shock and awe tactics had left investors reeling, sending a "tsunami of risk aversion across global markets," said Stephen Innes, a managing partner at Vanguard Markets Pte. in Singapore. China’s Tuesday yuan fixing is “ambiguous enough to keep two-sided interest alive while still conveying a message to U.S. trade hawks that in no uncertain terms will China be a pushover if trade talks ever resume," he said.