China sets weaker-than-expected yuan reference rate amid broader regional equity declines driven by semiconductor shares.
The People’s Bank of China set the USD/CNY reference rate at 6.7909, weaker than the 6.7577 estimate. The move comes as Asian markets face pressure, with Japan’s Nikkei down 3% and South Korea’s Kospi sliding 6% on sharp losses in chip stocks.
Regional equities extended declines after the Bank of Korea delivered a unanimous 25-basis-point rate hike to 2.75%, citing persistent inflation. The yen hovered near 162 per dollar, prompting warnings from Japan’s finance minister about currency volatility.
Oil prices edged higher as US-Iran tensions escalated, while UBS forecast the S&P 500 reaching 8,200 by June 2027 on strong earnings growth.