Overseas Trading: Tumbling Yuan Sparks Losses Across Asia and Europe

Asian stocks ended lower across the board today, as the People's Bank of China (PBOC) sent another ripple through currency markets. Overnight, the PBOC dropped the midpoint rate for the yuan by another 75 points, marking the currency's weakest guidance rate in nearly three years. Airline stocks led the losers in Shanghai, while exporters with exposure to China paced the decline in other regional markets. By the close, Hong Kong's Hang Seng dropped 2.4%, Japan's Nikkei fell 1.6%, China's Shanghai Composite shed 1.1%, and South Korea's Kospi gave up 0.6%.

European markets are also in the red at midday, tracking heavy losses in Asia and a brutal session on Wall Street Tuesday. A new Wall Street Journal report suggests the PBOC stepped in to prop up the yuan in the final minutes of Wednesday's session -- but miners and other resource stocks are among the top laggards, as traders price in growing concerns over future demand from China. At last check, the French CAC 40 is off 2.5%, Germany's DAX is down 2.3%, and London's FTSE 100 is 1.2% lower.