Chinese woes! MSCI Asia Pacific index tumbles to 4 year low

Market experts are of the view that a weaker yuan since last 8 days might escalate fears of a global currency war.

Mounting concern over the financial stability in China has dragged the Asian stock markets once again. The MSCI Asia Pacific excluding Japan Index nosedived over 2% to 374 points today in Hong Kong, going southward to its lowest level since October 2011.

Most of the leading Asian stock markets, began the second week of 2016 on a negative note as selling pressure prevailed Monday after signs of recovery in Chinese economy blurred with yuan devaluation.

Market experts are of the view that a weaker yuan since last 8 days might escalate fears of a global currency war.

Succumbing to heavy sell-off across sectors Asian stocks markets remained subdued on Monday as China’s Shanghai Composite Index opened lower. The Index currently is trading 2.40% lower at 3,109.95 points. Meanwhile, the CSI 300 Index is trading 2.16% lower at 3,288.80 points.

Among other notable losers, Singapore’s Straits Times is currently trading at 2,694.17 points (-2.12%), Taiwan’s Taiex at 7,804.08 points (-1.15%), South Korea’s Kospi index at 1,905.12 points (-0.66%), Thailand’s SET Composite at 1,228.28 points (-1.29%) and Singapore Nifty (SGX Nifty) at 7,520 (-1.12%). The Tokyo Stock Exchange is closed due to a holiday.