By Andy Heong
The yuan stabilized and most Asian stocks climbed as China’s central bank strengthened its currency’s reference rate for the first time since Tuesday’s devaluation. US oil and industrial metals in London headed for their seventh straight weekly declines.
The yuan was little changed at 6.3985 per dollar in onshore trading by 9:38 am in Hong Kong, after the People’s Bank of China (PBOC) set its reference rate at 6.3975, slightly stronger than Thursday’s closing price. China has reduced the rate around which its currency can trade by about 4.4 percent this week. The MSCI Asia Pacific Index climbed 0.1% and US index futures fluctuated. Oil fell 0.3%, while nickel headed for a 2.3% weekly loss.
China’s decision to move to a more market-oriented exchange-rate mechanism has rocked markets this week, triggering losses among developing-economy currencies and spurring a rush to havens such as bonds and the yen. Reports on US consumer sentiment and producer prices are due after data showed retail sales expanding in July.
— by Emma O’Brien & Nick Gentle
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