Reuters Insider - Asia Insight: Yuan eases to 1-month low, set for longest monthly losing streak since 1994

Nexen

28/09/2018 13:44

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Source: Reuters Insider

Description: Escalating Sino-U.S. trade tensions are putting the currency on
course for its longest monthly losing streak on record.
Many traders expect
the yuan to swing in a wide range of 6.8 to 6.9 per dollar in the near term
but with a downward bias as neither Washington nor Beijing appears willing to
compromise on trade any time soon.
Short Link: https://reut.rs/2IlZzff

Video Transcript:

Hello and welcome to your Asia Insight. I am Angeline Ong. First up: China's
Yuan is on course for its longest losing streak on record. The currency fell
to a one-month low against the Dollar because of escalating trade tensions
with the United States. Economists expect further policy easing in the coming
months of domestic and external demand continues to cool. Neither Washington
nor Beijing appears willing to compromise on trade anytime soon.
 br/  br/ Some US politicians' thoughts are ridiculous. Why I want to stress
is the bullying and pressure will not scare China and will not cause the
Chinese economy to collapse. Instead, we will turn these challenges into
motivations for development. br/  br/ Now Indonesia's central bank raised its
benchmark interest rate for the fifth time since mid-May on Thursday. It also
plans to help the ailing Rupiah by encouraging foreign investors to do their
currency hedging on shore. This year, the Rupiah has shed about 9% against the
Dollar to trade near its weakest levels since the 1997-1998 Asian financial
crisis. The Philippines has also raised interest rates by 50 basis points to
4.5%. The rise is the fourth over a period of five months. Now let's take a
quick look at the markets across Asia. And stocks outside Japan slipped in
late trading to end the day marginally in the red. Shanghai's blue chip CSI300
closed with its second weekly gain. Investors betting on solid inflows after
Chinese shares were included into global indices while Japan's Nikkei hit a
27-year high, taking heart from a boost for the Dollar. Now China has ditched
blanket production cuts on heavy industry in its finalized winter
anti-pollution plan. The move allows local authorities to adopt measures based
on regional emission levels. Before the revision, Beijing had been planning
blanket production cuts of 30% to 50% on heavy industry in 28 northern cities.
To real estate now and Hong Kong has the most overvalued property market in
the world. That's the finding of UBS in its latest global real estate bubble
index. Valuations were also stretched in Tokyo, Los Angeles, Zurich, and New
York. Sydney, which notoriously has become out of reach for many would be
homeowners, has slipped out of bubble territory. The report was published just
as Hong Kong property prices fell for the first time in 29 months during
August. Now let's take a look at some companies in the news and Australia's
big banks and wealth managers pursued profit ahead of their customers'
interests. That's the finding of a damning report into the sector by a
commission set up to investigate wrongdoing if found that financial firms
viewed regulatory compliance as a cost rather than a guide to proper conduct.
 br/  br/ The interim report delivered today to the governor general shines a
very bright light on the poor behavior of our financial sector. Banks and
other financial institutions have put profits before people. Greed has been
the motive. br/  br/ The Chinese oil giant CNOOC is considering selling some
of its assets in the Gulf of Mexico. The company is in the process of
restructuring its assets, while in the takeover of Canada's Nexen. Decision to
exit from some of its US assets is also being driven by the continuing trade
war between Washington and Beijing. And that's it from your Asia Insight. I'm
Angeline Ong and this is Reuters