Overseas Trading: Global Stocks Gain as China Defends Yuan Strategy

The People's Bank of China (PBOC) held a press conference to address this week's wild action in the yuan

by Elizabeth Harrow

Published on Aug 13, 2015 at 8:24 AM

Asian markets began to recover today from their recent bout of yuan-related shockwaves, with major equity benchmarks ending higher across the region. At a tightly controlled People's Bank of China (PBOC) press conference today, Vice Governor Yi Gang defended this week's decision to adopt a more flexible exchange rate, and batted down speculation that the move was a knee-jerk reaction to downbeat export data. Meanwhile, over in Korea, the won ticked higher after policymakers held interest rates steady at 1.5%. By the close, China's Shanghai Composite rallied 1.8% and Japan's Nikkei added nearly 1%, while Hong Kong's Hang Seng and South Korea's Kospi each advanced 0.4%.

European stocks are also on the upswing, taking their lead from Asia's positive finish. However, traders are keeping a close eye on Greek bailout proceedings, amid indications German lawmakers may decline to fast-track a vote on the country's next tranche of aid. At midday, the French CAC 40 is up 1.9%, the German DAX has tacked on 1.6%, and London's FTSE 100 is 0.7% higher.

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