In a rapid turn of events, the Chinese yuan has slid to a four-month low against the US dollar, prompting China’s state banks to reportedly intervene in an effort to stabilize the currency. Both the onshore and offshore yuan breached the 7.2 level, with the onshore yuan trading at 7.225 and the offshore yuan at 7.254.
Simultaneously, Li Auto, a Chinese electric vehicle company, saw its Hong Kong-listed shares plummet by over 9%, leading to a decline in the broader Hang Seng index. This drop came after Li Auto revised its delivery outlook for the first quarter, now expecting to deliver fewer vehicles than previously forecast.
The impact of these events rippled through the market, with other electric vehicle makers like Xpeng and Nio also experiencing declines in their stock prices. The Hang Seng index fell by 2.7%, while the Hang Seng Tech index dropped by 3.8%.
Meanwhile, Apple suppliers in Asia faced a mixed bag of results after the US Department of Justice filed an antitrust lawsuit against Apple, alleging monopolistic practices in the phone market. While companies like Taiwan Semiconductor Manufacturing Corp and Samsung Electronics saw their shares decline, iPhone manufacturer Foxconn experienced a notable increase in its stock price.
In another unexpected move, Taiwan’s central bank raised its main policy rate to 2%, the highest level since 2008. The decision was driven by concerns over inflation and a potential electricity rate hike in April.
As the week comes to a close, the stock market remains volatile, with utility stocks outperforming tech stocks and the major averages hitting record highs. Investors are closely watching the developments in the global economy and the impact of geopolitical events on financial markets.
