The Chinese yuan was off to a heedful start late Monday as traders analyzed developments in China's monetary landscape following reports that the US may kick out Chinese firms from American stock exchanges.
Japan's Nikkei crashed 0.60 percent while MSCI's biggest index of Asian-Pacific stocks outside the country dropped 0.10 percent. Stock futures in the US climbed 0.25 percent in pre-market sessions, offsetting nearly 50 percent of Friday's 0.54 percent decline in the index.
In currencies, China's offshore yuan was little changed at 7.1338 per US dollar, off its three-week low Friday, of 7.15198 to the USD. Stock markets in most of China will be open only on Monday this week prior to the country's National Day Holiday set until October 7.
The core parity rate of the yuan grew 5 pips to 7.0724 against the USD dollar early Thursday, the China Foreign Exchange Trade System reported. The yuan is allowed to climb or drop by 2 percent from its parity rate each trading day in China's foreign exchange market.
The central parity rate of China's currency versus the greenback is based on a gauged price average offered by traders prior to the opening bell.
Risk assets, on the other hand, were battered in US trading after news that US President Donald Trump and his team of finance experts are planning to impose new pressure tactics on China, which includes the possibility of delisting Chinese firms from the NASDAQ, NYSE, and other American stock exchanges.
The report jolted major Chinese stocks on the US exchanges, with the Alibaba Group losing 5.14 percent and JD.com shedding almost 6 percent late Friday. According to sources, China's planned exclusion from US stock exchanges as part of a move to limit American investment in China's big-name entities, sources told Reuters.
US manufacturing data on Friday indicated that consumer spending rose just moderately in August and general trade sentiment remained dismal, suggesting the US economy was losing steam as trade issues with China lingers on. In Tokyo and Seoul, factory output posted early Monday dropped more than estimated as investors kept a tight watch on US politics.
Meanwhile, Saudi Arabia's crown prince warned that prices of crude could increase to "unimaginably huge numbers" if the global community does not band together to counter Iran.
However, crown prince Mohammed bin Salman announced he would choose a political way out than resorting to military action. The prince said the Sept. 14 drone attack on Saudi Arabia's oil fields was an act of war committed by Iran.
