Asian markets muted while yuan briefly slumps to a record low

CNN Wire

Asian markets were muted in early trading Tuesday, while the Chinese yuan briefly dipped to historically low levels in offshore trading.

China’s Shanghai Composite Index swung between small gains and losses. It’s down about 0.2% after a 1.3% rally Monday.

Hong Kong’s Hang Seng also inched 0.1% lower following slight weakness Monday. Last month, the Hang Seng recorded a 7.4% drop — one of the worst among major global indexes. The index has been weighed down by escalating US-China trade tensions as well as intensifying protests in the city.

Japan’s Nikkei inched up 0.1%, while South Korea’s Kospi rose 0.3%.

The Chinese yuan touched a record low in offshore trading early Tuesday morning — it briefly hit 7.196 yuan per one US dollar, the lowest since it began trading outside of mainland China in 2010. It’s now trading a bit higher at 7.188 per dollar, which is slightly stronger than Monday.

So far this year, the yuan has lost 4.6% against the dollar in offshore trading, where the currency trades more freely.

The onshore yuan, meanwhile, was trading at around 7.18 per dollar Tuesday. It has fallen about 4.4% this year.

Here’s what is happening elsewhere at about 10:30 a.m. Hong Kong time:

  • Xiaomi, which is the world’s fourth largest smartphone manufacturer, jumped 6% in Hong Kong after it announced a share buyback plan of up to 12 billion Hong Kong dollars ($1.5 billion).
  • South Korea revised its estimate for GDP growth for the second quarter on Tuesday. Its GDP expanded by 1% in the quarter compared with the first quarter, which is slightly lower than a previous estimate, the Bank of Korea said.
  • US markets were closed Monday because of the Labor Day holiday.

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