Asian stocks fall on strong US economic data, struggling yuan

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MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 1.6% and Japan’s benchmark Nikkei average was down 0.95%

Hong Kong — Asian stocks fell on Wednesday as investors took no cheer from strong US economic data and as weaker-than-expected Chinese trade numbers pressed the yuan lower.

The yuan further weakened, depreciating 0.36% to 6.98 per dollar and approaching the 7-per-dollar mark. Chinese authorities have signalled concerns about the currency’s strong declines. Fixed-income markets came under heavy pressure, with US 10-year treasury yields rising to 3.365% on Wednesday, the highest since June 16. The Japanese yen, which has tended to weaken as US 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%. 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.

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