HONG KONG :Asian stocks fell on Wednesday as investors took no cheer from strong U.S. economic data and as weaker-than-expected Chinese trade numbers pressed the yuan lower.
The yuan further weakened, depreciating 0.36 per cent to 6.98 per dollar and approaching the 7-per-dollar mark. Chinese authorities have signaled concerns about the currency's strong declines. Fixed-income markets came under heavy pressure, with U.S. 10-year treasuries yields rising to 3.365 per cent on Wednesday, the highest since June 16. The Japanese yen, which has tended to weaken as U.S. yields have risen, hit a fresh 24-year low of 143.57 per dollar.
"The good news for the real economy has now become bad news for the market - both for the bond and the stock market," said Redmond Wong, Hong Kong-based Market Strategist of Greater China at Saxo Capital Markets. Australia's S&P/ASX 200 index lost 1.34 per cent. Economic growth in Australia in the second quarter picked up speed, offering hope that activity could weather sharply higher interest rates and cost-of-living pressures.