Stocks, currencies and commodities fall sharply across region as investors fear a stalling China economy and possible currency war despite Beijing’s assurances
China stunned the world’s financial markets on Wednesday by devaluing its currency for a second consecutive day, triggering fears its economy is in worse shape than investors believed.
The move sent fresh shockwaves through global markets, pushing shares sharply lower and sending commodity prices further into reverse as traders feared the move could also ignite a currency war that would destabilise the world economy.
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A cheaper yuan to help Chinese exports
A decisive role in the economy
Acted after strings of poor economic figures
Currency war that would destablilise economies
Fall in exports
High relative to other major currencies
Integrating into global financial markets
International use of Chinese currency
Overvalued against the dollars
Push shares lower throughout global markets
Slowing business investment growth
Weakening currencies around the emerging markets