Asian Stocks Trade Mixed; Yuan Pares PBOC Gain: Markets Wrap

Bloomberg.com — Asian stocks were mixed Monday as China pledged it will stand the course of a trade war with the U.S. The yuan pared some of its gains following a rally triggered by a surprise China central bank move to make it more expensive to bet against the currency.

Equities in Hong Kong traded higher while Chinese shares declined, with the Shanghai Composite Index down more than 20 percent from January’s high and set to close at its lowest since February 2016. Japanese shares fell. Investors struggled to take the markets it either direction as they continued to parse the latest earnings results, including HSBC Holdings Plc. The yield on 10-year Treasuries steadied at 2.95 percent while the dollar ticked higher.

China stepped in to try to cushion the yuan after a record string of weekly losses saw the currency closing in on the key milestone of 7 per dollar. After a weekend of claims by U.S. President Donald Trump that he has the upper hand in the trade war with China, Beijing responded through state media by saying the nation is ready to endure the economic fallout.

Elsewhere, the Australian dollar slipped as funds hedged against the possibility of the central bank cutting its long-term inflation forecasts this week. The Canadian dollar edged lower as Saudi Arabia froze new trade and investments with the country. Oil and gold advanced.