Business

Asian stocks rise despite lower yuan

Nikkei stock boards Image copyright AFP
Image caption Japanese stocks were higher despite the yuan uncertainty

Asian stock markets were trading mostly higher, despite the value of China's yuan falling for a third consecutive day.

Thursday's yuan guidance rate was set 1% lower, a smaller margin than the shock cuts earlier in the week.

The midpoint is a guiding rate set by the government, from which trade can rise or fall 2% during the day.

The Shanghai Composite index closed up 1.8% at 3,954.56, with hopes that the lower yuan will help exports.

In Hong Kong, the Hang Seng ended up 0.4% at 24,018.80.

In Japan, the Nikkei 225 index, closed the day 1% higher at 20,595.55 rebounding from hefty losses the previous day.

That was despite the release of official figures showing Japan's core machinery orders fell 7.9% in June, the first decline for four months.

In South Korea, the Kospi index finished the day 0.4% higher at 1,983.46. The country's central bank kept interest rates unchanged at 1.5%, as expected.

In Australia, the benchmark S&P/ASX 200 closed almost flat at 5,387.90.

Shares in mining giant BHP Billiton rebounded slightly, rising 1.2%, while a rise in gold prices sent other mining companies higher.

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