China’s Yuan drops as markets reopen after break; stocks mixed

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Published: February 11, 2019 8:33:39 AM

Chinese Vice Premier Liu He will join Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer in Beijing for high-level trade talks this week after Donald Trump said he won’t meet Xi Jinping before the imposition of new U.S. tariffs on Chinese goods.

China, China yuan, china currency, CSI 300 index, liu he, beijing, US tariffs on Chinese goods, China equity marketThe CSI 300 was up 7.9 percent this year through Feb. 1 as investors took comfort from Beijing’s measures to support the economy and risk assets gaining favor around the world. (Reuters)

China’s currency slipped and equities were little changed as the nation’s markets resumed trading after the week-long Lunar New Year holiday. The yuan dropped 0.5 percent as it traded for the first time in at least a week and the People’s Bank of China set the daily fixing at 6.7495 per dollar. The CSI 300 Index rose less than 0.1 percent.

The CSI 300 was up 7.9 percent this year through Feb. 1 as investors took comfort from Beijing’s measures to support the economy and risk assets gaining favor around the world. A January rally had briefly taken the yuan past the 6.7 per dollar level for the first time since July.

Also read| Global markets: Asian shares on backfoot ahead of US-China trade talks

Chinese Vice Premier Liu He will join Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer in Beijing for high-level trade talks this week after Donald Trump said he won’t meet Xi Jinping before the imposition of new U.S. tariffs on Chinese goods.

Technical indicators suggest the coming weeks will be pivotal for China’s equity market after it recovered almost $380 billion this year. A gauge of momentum on the CSI 300 climbed to the highest level in a year before the Lunar New Year holiday, while the Shanghai Composite Index finally closed above its 100-day moving average for the first time since last February. In Hong Kong, the Hang Seng Index is just points away from the 28,000 key level.

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