TOKYO – Global stocks extended already substantial losses on Tuesday, after Washington designated Beijing a currency manipulator and further rattled fragile investor sentiment in a rapid escalation of the U.S.-China trade war.
On Monday, China let the yuan slide in response to the latest U.S. tariffs, which are expected to further aggravate trade tensions between the world’s two largest economies.
Wall Street’s major indexes posted their biggest percentage drop of the year on Monday on concerns about the U.S.-China trade war.
The Chinese yuan CNY= onshore fell to an 11-year low on Tuesday, brushing 7.0699 per dollar.
In a symbolic move, Beijing let the yuan breach 7-per-dollar on Monday for the first time since late 2008.
China’s offshore yuan stretched the previous day’s slide, and briefly weakened to 7.1382 CNH=D4, the lowest since international trading in the Chinese currency began in 2010.
Japan’s 10-year yield fell to a three-year trough of minus 0.215%. Brent crude oil futures plumbed a seven-month low of $59.07 per barrel as the trade war raised concerns about lower demand for commodities.