In a recent turn of events, the Chinese yuan has taken a hit, sliding to a four-month low against the US dollar. Both the onshore and offshore yuan breached the 7.2 level, with the onshore yuan trading at 7.225 and the offshore yuan at 7.254. In response to this decline, China’s state banks reportedly intervened by swapping dollars for yuan to stabilize the situation.
Meanwhile, in the world of electric vehicles, Hong Kong-listed shares of Li Auto plummeted over 9%, leading to a decline in the broader Hang Seng index. The Chinese EV company revised its delivery outlook for the first quarter, now expecting to deliver fewer vehicles than previously forecasted. This news also impacted other EV makers, with Xpeng dropping 8.3% and Nio falling 3%.
On the Apple front, suppliers in Asia experienced a downturn after the US Department of Justice filed an antitrust lawsuit against the tech giant. While companies like Taiwan Semiconductor Manufacturing Corp and Samsung Electronics saw a decline in their shares, iPhone manufacturer Foxconn saw a 3.16% increase in its stock value.
In a surprising move, Taiwan’s central bank raised its main policy rate to 2%, the highest level since 2008. The decision was driven by concerns over inflation and a potential electricity rate hike in April. This unexpected move caught many economists off guard, with only one out of 26 predicting the rate hike.
Looking ahead to April, utility stocks are expected to perform well, according to market technician Jonathan Krinsky. He noted that utility stocks have historically outperformed in April and are currently showing signs of a bullish reversal.
Overall, the stock market continues to show resilience, with all three major averages reaching record closing highs for the second consecutive session. As investors navigate through these developments, it will be interesting to see how the market responds in the coming days.
