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AsiaPac Stocks, FX Tumble As China Devalues Yuan Most In 4 Weeks, Sees "No Need For Massive Economic Stimulus"

Losses from the US session extended following comments in one of the government's official mouthpieces that "China doesn't need massive stimulus." A BoNZ rate cut (blaming China's devaluation) sent Kiwi tumbling, Ringgit hit a fresh 17 year low against the USD, Japanese stocks collapsed over 650 points so far, and Chinese stocks are opening notably lower. Volume remains de minimus (99% below average) in Chinese futures trading as China devalues the Yuan by the most since Aug 13 and injects another 80 billion Yuan liquidity.

 

US weakness did not help but once this hit early on in the Asia session...

  • CHINA DOESN’T NEED MASSIVE ECONOMIC STIMULUS: FINANCIAL NEWS

Adding:

  • *CHINA FACES DOWNWARD PRESSURE IN 2-3 YEARS: PBOC ADVISOR HUANG
  • *CHINA YET TO FIND NEW GROWTH PILLARS: PBOC ADVISOR

Losses grew.

*  *  *

The Bank of New Zealand cut rates:

  • *NEW ZEALAND CUTS KEY INTEREST RATE TO 2.75% FROM 3.00%
  • *WHEELER: SIGNIFICANT YUAN DEVALUATION WOULD BE BIG WORRY
  • *RBNZ SAYS FURTHER NZD DEPRECIATION IS APPROPRIATE

Slamming Kiwi lower...

  • *NEW ZEALAND DOLLAR DROPS MORE THAN 2% FOLLOWING RBNZ RATE CUT

 

The Maysian Ringgit dropped another 1% in the early trading - to its weakest since 1998...

  • *MALAYSIA'S KEY STOCK INDEX OPENS DOWN 0.7% AT 1,592.16
  • *MALAYSIAN RINGGIT DROPS 1% TO 4.3728 PER DOLLAR

 

 

Japanese stocks opened down 550 points at the cash open having fallen all day during the US session... Now down 650 points

 

Broad AsiaPac stocks are lower...

  • *MSCI ASIA PACIFIC INDEX DROPS 2.2%, EXTENDING LOSS

And China opens weaker (despite Fink's help)...

  • *CHINA'S CSI 300 STOCK-INDEX FUTURES FALL 0.5% TO 3,308.4

As China injects another 80 billion Yuan...

  • *PBOC TO INJECT 80B YUAN WITH 7-DAY REVERSE REPOS: TRADER

And then devalues The Yuian by th emost since 8/13...

  • *CHINA SETS YUAN REFERENCE RATE AT 6.3772 AGAINST U.S. DOLLAR
  • *CHINA WEAKENS YUAN FIXING BY 0.22% TO 6.3772/USD

 

Perhaps the recent Treasury selling gave them enough to hold the Yuan down here?

 

Charts: Bloomberg