The coronavirus pandemic continues to continue to dominate the headlines, but there are other issues as well. Interestingly, stocks in Asia-Pacific mostly advanced on October 12, with investors monitoring the currency of the world’s second-largest economy.
Importantly, mainland Chinese stocks were among the biggest gainers in the region. For example, Shanghai Composite added 2.64% to close at about 3’358.46. At the same time, the Shenzhen Component jumped 3’151% to end its trading day at approximately 13’708.07.
Interestingly, the moves in Chinese stocks came after state media outlet Xinhua released the information that helped to boost stocks. According to Xinhua, the country unveiled a new comprehensive reform plan for Shenzhen. As a result, local authorities will enjoy a more direct and greater say in business in areas such a carrying out market-based economic reforms.
It is worth noting that, Hong Kong’s Hang Seng index added 2.2% to close at 24’649.68. Shares of Chinese banks listed in the city jumped on Monday. Notably, shares of China Construction Bank gained 5.58%. Moreover, shares of ICBC added 5.74%, and the Bank of China advanced 4.18%.
South Korea’s Kospi index added 0.49% to close at 2’403.73.
Australia’s S&P/ASX 200 gained 0.49% to 6’132.
Unfortunately, Japanese stocks declined on the day. The Nikkei 225 fell 0.46% to close at 23’558.69. In the meantime, the Topix index dropped 0.24% to end its trading day at 1’643.35.
Stocks and Chinese yuan
Investors monitored the yuan’s movements on Monday, after the country’s central bank, People’s Bank of China announced a rule change that made it cheaper to short the yuan.
As a reminder, traders short the yuan when they expect the currency to weaken in the future. It is worth noting that, one way to do so is to borrow in yuan in hopes of buying it back at a lower price later and pocketing the difference.