Asian stocks fell for a third day, with the regional benchmark index extending a seven-month low, as investors continued to weigh the impact of China’s shock currency devaluation.
The MSCI Asia Pacific Index dropped 0.2 percent to 138.05 as of 9:02 a.m. in Tokyo. U.S. stocks reversed losses in Wednesday trading as the greenback’s retreat sparked a rebound in some commodities. Concern the yuan’s devaluation will sap inflation globally threw the outlook for higher U.S. interest rates into question, sinking the dollar. The yuan climbed 0.7 percent in Hong Kong following a two-day rout.
Japan’s Topix index slid 0.3 percent while South Korea’s Kospi index fell 0.1 percent. Australia’s S&P/ASX 200 Index gained 0.2 percent and New Zealand’s NZX 50 Index slid 0.2 percent. Markets in Hong Kong and China have yet to open.
The Shanghai Composite Index slipped 1.1 percent on Wednesday, while the Hang Seng China Enterprises Index of mainland stocks traded in Hong Kong fell 2 percent. Data showed China’s industrial production, investment and retail data all trailed analysts estimates, putting additional downward pressure on an already weakening currency.