China Stock Market Trades Flat as Yuan Rate Strengthens

Chinese stocks were flat on August 14 as the central bank raised the trading range of the yuan.

China’s central bank set the yuan rate at 6.3975 per dollar compared to Thursday’s close of 6.3982.

The rate is set daily and allows a 4% fluctuation – over the past week, the bank had guided the yuan to a record low sparking fears of a currency war to help lagging Chinese exports.

The benchmark Shanghai Composite was flat at 3,947.47 points.

Following the mainland’s lead, Hong Kong’s Hang Seng also remained unchanged, trading flat at 24,005.92.

Japanese shares traded lower with the Nikkei 225 index closing 0.4% lower at 20,519.45 points.

Investors are anticipating next week’s release of Japan’s economic growth for the past three months.

In Australia, the S&P/ASX 200 also fell by 0.5% finishing at 5,360.90 points as investors took a cue from Wall Street’s flat close and the ongoing uncertainty over the yuan.

China’s currency is important to Australia as it is the main export market for the country’s natural resources.

In South Korea, the Kospi index remained closed on August 14 as the country will mark a national holiday on August 15.