The depreciation of China’s yuan and the interest rate increase by the US Federal Reserve has caused Asian stocks to fall on Friday. Taiwan’s central bank also cut its interest rates for the second time this year, and Thailand is expecting its currency to be further devalued as a result.
The yuan has weakened against the dollar, and is expected to fall 5% to 6% over the next quarter. The yuan has slipped against the dollar for 10 straight sessions through Thursday, marking the longest weakening streak for the currency on record.
Slumping oil prices are hurting the Asian economy, and the US dollar continues to strengthen.
MSCI’s broadcast index fell 0.4% in early morning trading, but is still on track to reach a 1.5% increase for the week. The Nikkei 225 fell 1.9% on the day and is now expected to have a weekly loss.
The Bank of Japan held off on expanding current stimulus measures in the country. European markets are also down the day. The German DAX down 1.21%, and the Euro Index currently flat. China A50 ended the day up 0.93%, while Hong Kong’s Hang Seng ended the day down 0.53%. Taiwan’s Weighted index fell 0.75% on the day.