15:19 | 06/01/2016 Global Economy
Asian stocks fell on Wednesday as Beijing continued guiding the yuan lower and a survey pointed to weakness in China's services sector, while the Japanese yen drew support from risk aversion.
A stock indicator shows the benchmark Shanghai Composite Index on Jan 4, 2016 - Photo: Chinadaily
The Republic of Korea's KOSPI and the won both lost about 0.6%. Australian shares lost 1.3%. Japan's Nikkei dropped 1.1%.
The People's Bank of China set the yuan's midpoint rate at its weakest level in four and a half years on Wednesday.
China has guided the yuan steadily lower since sharply devaluing the currency last summer, rattling traders who fear it could eventually set off a round of competitive devaluations.
Some see the tactic as a desperate attempt by China to shore up its economy, prompting concerns that the world's second biggest economy could be even weaker than imagined./.