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Chinese stocks fell hard in late trade

Photo: China Photos/Getty Images

Chinese stocks have set a poor tone for the start of another trading week, with a sell-off in stocks gathering pace into the close of trade.

The benchmark Shanghai Composite finished the day down 5.3%, having been down only around 3% for most of Monday’s session.

The CSI300, a combination of the 300 biggest companies on the Shanghai and Shenzen markets, was also down just over 5% for the day.

Its broader related index, the CSI500, was down 6.7%. If the circuit breaker rules had not been ditched last week by Beijing authorities, trade would have been at least temporarily halted on today’s sell-offs.

The falls came after the People’s Bank of China surprised markets by announcing a stronger than expected yuan fixing, setting the USD/CNY rate at 6.5626.

The figure was below Friday’s fixing of 6.5636 and the final traded price of 6.5938 seen on Friday evening.

A lower number indicates that the yuan has strengthened against the US dollar.

In initial trades the USD/CNY rose to as high as Friday’s closing level before reversing sharply, indicating that the government – through its network of state-owned banks – may be intervening in the market to support the currency.

The daily chart of USD/CNH – offshore traded yuan – reveals how the recent sell off in the currency has stalled in recent sessions.

Here’s the current Asia market scoreboard after the China close. Note Japanese markets were closed for the Coming of Age holiday.

Stocks

Stocks

  • ASX 200 4932.24 , -58.60 , -1.17%
  • Nikkei 225 17697.96 , -69.38 , -0.39%
  • Shanghai Composite 3018.00 , -168.42 , -5.29%
  • Hang Seng 19983.39 , -470.32 , -2.30%
  • KOSPI 1894.84 , -22.78 , -1.19%
  • Straits Times 2696.52 , -54.71 , -1.99%
  • S&P 500 Futures 1909.00 , -2.50 , -0.13%

Forex

  • USD/JPY 117.19 , -0.25 , -0.21%
  • USD/CNY 6.5832 , -0.0100 , -0.15%
  • AUD/USD 0.6973 , 0.0022 , 0.32%
  • NZD/USD 0.6538 , 0.0000 , 0.00%
  • AUD/JPY 81.72 , 0.11 , 0.13%
  • EUR/USD 1.0912 , -0.0017 , -0.16%
  • GBP/USD 1.4530 , 0.0013 , 0.09%
  • USD INDEX 98.410 , -0.1300 , -0.13%

Commodities

  • Gold $1,105.20 , $1.36 , 0.12%
  • Silver $13.99 , $0.06 , 0.41%
  • WTI Futures $32.36 , -$0.80 , -2.41%
  • Copper Futures ¥35,010 , -¥930 -2.59%
  • Iron Ore Futures ¥305.50 , -¥8.00 , -2.55%

10-Year Bond Yields

  • Australia 2.761%
  • New Zealand 3.390%
  • Japan 0.222%
  • Germany 0.521%
  • UK 1.763%
  • US 2.116%

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