The Cedears, heavily hit by the fall of the CCL dollar, also had their impact with the doubts generated by the economy of the Asian giant and the price of the yuan.
The Chinese currency suffered its worst decline against the dollar in 16 years due to a fall in the real estate sector, which was added to the weakness of local consumption and the contraction of credit, which put the strength of its economy in doubt. At the same time, The Asian giant banned the use of iPhone in government offices and state-backed entities.
Thus, the yuan fell to 7.3299 units per dollar, its lowest level since December 2007 while the main stock markets in the Asia-Pacific region closed today with negative results, according to data from the Bloomberg agency: Japan, Nikkei (-0.75%)China, Shanghai (-1.13%)China, Shenzhen (-1.76%)Hong Kong, Hang Seng (-1.34%)Korea, Kospi (-0.59%).
For the Novel of Economics, Paul Krugman,“China is facing a major economic crisis and has reached the limit of what it has been doing to keep its economy afloat”unless “If the Chinese government is willing to face the need to do something very different, China is heading towards a very unpleasant crisis.”
Thus, in the local stock market, to the strong declines driven by the fall of the CCL, was added the poor performance of Chinese companies: such as technology Baidu fell -5.9%, the Chinese e-commerce giant Alibaba lost -7.7%, and the automaker CHILD which fell 7-%.
But the decision about Manzana It also impacted Wall Street. “The new restrictions imposed by China on Apple Inc hit equity in general and only the Dow Jones was able to escape the reds, led by defensive segments, such as utilities and health care,” they said from PPI.
Source: Ambito
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