in the currency markets, The Chinese yuan fell against the US dollar, hurting its value Lowest in one and a half years. It compensated for some losses in the afternoon to stand at 6.71 per US dollar.
The losses came after the Dow plunged more than 1,100 points and the Standard & Poor’s fell 3.7% on Thursday, reversing Wednesday’s gains as investors worried about the impact of higher US interest rates and the risk of a recession.
Investors Asia is also tense after recent comments from China’s top leadership regarding its efforts to stem the spread of the coronavirus.
President Xi Jinping said all levels of government should “resolutely” adhere to the country’s non-proliferation policy. He stated this during Thursday’s meeting with the Standing Committee of the Politburo of the CPSU – the country’s highest decision-making body.
Xi said officials at all levels of the government should “resolutely fight back any words and deeds that slander, doubt and deny China’s COVID control policy.”
“This may dampen some hopes for any shift in Covid-19 policy, suggesting that the economic recovery will remain long and uneven,” Yeap Jun Rong, market analyst at financial services firm IG Group, wrote on Friday.
Nicole Goodkind contributed to this report.
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