As the U.S. stock market fell all at once the previous day and Asian currencies such as the yen weakened, the Asian stock market is starting to plunge all at once.
As of 10 a.m. on the 20th, Japan’s Nikkei is down 1.18%, Korea’s KOSPI is down 1.16%, and Australia’s ASX index is down 1.09%.
This is attributed to the fact that the U.S. stock market fell all at once the previous day and that the Asian currency is weakening.
On the previous day, Dow fell 0.33%, S&P 500 fell 0.67%, and Nasdaq fell 0.85% respectively.
This is because the U.S. government bond yield has soared. The 10-year government bond yield, a benchmark for U.S. government bonds, soared to 4.136% and surpassed 4.1%. This is the highest level since July 23, 2008, the highest in 14 years.
In addition, the weak Asian currency is also contributing to the decline in the sub-share market. The Japanese yen has fallen to the point where it is on the verge of surpassing 150 yen per dollar, the lowest level in 32 years.
The yuan’s exchange rate against the dollar in the offshore market exceeded 7.27 yuan per dollar, the lowest level since 2010 when the Hong Kong offshore market was opened. The yuan continues to weaken, with the People’s Bank of China’s official exchange rate also hitting the highest level this year.
On the 20th, the People’s Bank of China, the central bank of China, announced that the yuan-based exchange rate against the dollar was 7.1188 yuan, up 0.0083 yuan from the previous trading day. This is a 0.12% drop in the value of the yuan against the dollar.
The yuan’s benchmark exchange rate announced by the People’s Bank of China was the lowest in more than two years and four months since 7.1315 yuan per dollar on June 1, 2020.
