(Bloomberg) -- Asian equities erased earlier losses as Chinese stocks surged after a report said regulators will loosen rules on the asset management industry. The yuan wiped out an earlier decline amid suspected intervention from officials.
The MSCI Asia Pacific Index rose 0.5 percent to 165.41 as of 3:15 p.m. in Hong Kong. The Shanghai Composite Index rallied 2 percent as a gauge of financial companies gained on a report in 21st Century Business Herald that said mutual funds will be allowed to buy non-standard products, said Zhang Gang, a strategist at Central China Securities.
Speculation that Chinese officials were seeking to cool declines sent the yuan higher as a big Chinese bank was seen offering to sell the dollar when the yuan weakened to 6.81 this morning, according to traders.
“The bounce in the yuan helped ease the market’s nervousness with the currency’s continued weakness, which could lead to a round of competitive devaluation across the region if it’s not arrested,” said Astro del Castillo, a managing director at First Grade Finance Inc.
Summary
- Japan’s Topix index -0.3%, Nikkei 225 -0.3%
- Hang Seng China Enterprises +1.7%
- Taiwan’s Taiex index +0.9%
- South Korea’s Kospi index +0.3%, Kospi 200 +0.4%
- Australia’s S&P/ASX 200 Index +0.4%, New Zealand’s S&P/NZX 50 +0.4%
- India’s S&P BSE Sensex Index +0.5%, NSE Nifty 50 +0.5%
- Straits Times Index +0.4%, Malaysia’s KLCI -0.4%, Philippine Stock Exchange Index -0.3%, Jakarta Composite -0.2%, Thailand’s SET +1.1%, Vietnam’s VN Index -0.7%
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