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Overseas Trading: China Slides Again As PBOC Steps In

Stocks in Asia were mostly lower again, even after the People's Bank of China injected $20 billion into markets

Jan 5, 2016 at 8:32 AM
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It was another wild day for stocks in Asia. After Chinese markets utilized the circuit breaker system for the first time ever on Monday amid heavy losses, a continued slide in shares earlier today forced the People's Bank of China (PBOC) to intervene, injecting $20 billion into markets. It was an up-and-down session as a result, though the Shanghai Composite managed to pare most of its losses to close 0.3% lower. Meanwhile, the yuan plummeted to over four-year lows against the U.S. dollar. 

Most neighboring markets followed the mainland's lead, with Hong Kong's Hang Seng closing with a 0.7% loss. In Japan, the Nikkei flirted with positive territory before settling 0.4% lower, while South Korea's Kospi managed a 0.6% win. 

The choppy trade extended to Europe, where equities were seen mostly lower at last check. Outside of China, traders are monitoring news out Saudi Arabia and Iran, after the former ended diplomatic relations on Monday. London's FTSE 100 was last seen 0.4% higher, with Germany's DAX and France's CAC 40 lower by 0.3% and 0.1%, respectively. 


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