China markets swing wildly on uncertainty about growth and trade

Major Chinese banks ditching US dollar to prop up domestic currency

Oil prices were lower on Monday, with U.S. West Texas Intermediate crude futures falling 0.88 percent to trade at $73.50 per barrel and Brent crude futures dropping 1.11 percent to $78.35.

In early trade on Tuesday, yuan weakened to a low of 6.7204 against the dollar, the lowest since August 7, 2017.

On equity markets, Hong Kong dived as much as 3.3 per cent at one point to nine-month lows, hit also by a U.S. move to block China Mobile from offering services to the United States market.

China's yuan rose sharply against the dollar on Wednesday and stocks flip-flopped a day after the People's Bank of China governor assured markets the central bank would keep the currency stable.

Speculation was rife China's central bank was intervening in the currency market to staunch losses and prevent a potentially destabilizing sell-off in the yuan, while stocks came off a searing sell-off in the morning.

The yuan tumbled overnight amid trade tensions with the United States, before China's central bank intervened to calm jittery investors.

Chinese stocks were hit the hardest, with Hong Kong's Hang Seng index diving as much as 3.3 percent to its lowest level in ten months, while the Shanghai Composite Index shed as much as 1.9 percent to hit a fresh 28 month low.

China's yuan rebounded for a second day on Wednesday as the currency took a breather from its sharp depreciation in recent weeks, although bearish sentiment lingered as the USA prepares to implement tariffs on US$34 billion of Chinese imports on July 6.

Hao Hong, chief strategist at Hong Kong broker BOCOM International, said it's too early to call the bottom.

Traders said statements from the PBOC officials went some way towards calming the market.

The US Commerce Department on Monday added to the standoff by recommending against the approval of China Mobile's seven-year-old application to enter the US market, citing national security concerns.

The Reserve Bank of Australia (RBA) kept rates at a record low 1.5 per cent on Tuesday and showed no hint of raising them soon.

Officials in China, the epicenter of the worldwide trade row, have warned the United States that the tit-for-tat tariffs on each others' goods will ultimately prove detrimental for American businesses and jobs.

The euro held up against the dollar after German Chancellor Angela Merkel reached a compromise deal on immigration with her coalition partners, keeping her government intact for now and averting a crisis in Europe's biggest economy.

The Canadian dollar edged up to C$1.3113, its highest level in 2-1/2 weeks.

The dollar last stood at 110.97 yen, giving up gains following sharp falls in Chinese shares.

MSCI's broad index of shares in Asia Pacific excluding Japan edged down by 0.69 percent, but it remained above the nine-month lows it touched last week. -China trade tariffs, traders were more concerned about jettisoning risk which could have contributed to the amplified price action. Oil is one of Canada's major exports.

U.S. crude oil futures climbed above the $75 mark for the first time in 3-1/2 years overnight and hovered near that level on Wednesday.



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