SINGAPORE – Asia-Pacific stocks traded higher on Monday morning as investors watched moves in the Chinese yuan.
In Japan, the Nikki225 The opening trade fell 0.28%, while the Topics index fell 0.17%. Of South Korea CosbyOn the other hand, the stock rose 0.41% as it returned to trading following the holiday on Friday.
Meanwhile, stocks in Australia changed slightly S&P / ASX200 Above the flatline.
Outside Japan, the broadest index of MSCI Asia-Pacific stocks traded up about 0.1%.
Chinese Yuan Watch
Movements in the Chinese yuan are set to be seen by investors on Monday, with the Chinese People’s Bank announcing a rule change after the yuan depreciated.
With effect from Monday, the central bank announced on Saturday that financial institutions will no longer have to allocate money when certain foreign exchange trades forward. Previously, financial institutions had to set aside 20% of the previous month’s yuan forward settlement amount as foreign exchange risk reserves. According to Reuters.
After strengthening over the past few months, the offshore yuan has finally weakened more than 0.6% against the greenback, to 6.7332 against the dollar.
Tabas Strickland, of the National Bank of Australia, said the yuan’s move may have been driven by a change in the rules “that it (lowering the (Chinese yuan)) is less costly and signaling less (concern) about currency weakness.”
Oil prices are slipping
The US Dollar Index, Tracking the green pack against the basket of its peers was 93.125, following the recent decline from levels above 93.3.
The Japanese Yen The dollar traded at 105.60 against the dollar after strengthening from levels above 105.9 against the greenback last week. The Australian dollar It rose about 71 0.71 last week and changed hands to 72 0.722.