The question of how far and quickly the yuan will fall depends on Beijing's resolve in countering Donald Trump's tariffs with stimulus measures.
Beijing contends with a weakening yuan while awaiting policy clues from the incoming Donald Trump’s administration.
The 5% expansion is in line with the target set by Beijing, but it is the weakest since 1990, excluding the pandemic years.
Base metals declined after US President Donald Trump said he would likely enact tariffs on Mexico and Canada by Feb. 1, hurting market sentiment even as he held off from imposing levies on China.
In contrast, policymakers at the U.S. Federal Reserve are now anticipating fewer ... while cautioning that Beijing's stimulus measures were "insufficient" to do more than stabilize the economy ...
Japan's Nikkei was up about half a percent at the midday break, on track to snap a three-day losing run. Australia's stock benchmark gained 0.9%, with additional momentum from a mild inflation print that boosted the odds for a rate cut when the Reserve Bank meets next month.
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The threat of sweeping tariffs, a central plank of his campaign promises, had raised concerns of a resurgence in inflation
City's economy is likely to grow between 2.5 and 3 per cent, ANZ chief economist Raymond Yeung says Beijing's recent measures will lead to more capital flows into Hong Kong equities, becoming a key driver of the city's growth in the Year of the Snake,
Global economic policymakers had been braced for an economic firestorm from the new U.S. administration but instead got a surprisingly restrained start from Donald Trump, who remains big on rhetoric but more cautious on action - for now.
Trump's announcement of imposing tariffs and travel bans on Colombia with countermeasures from Colombian President Petro points to the abiding risk of U.S. tariffs even beyond U.S.-China geopolitical relations, RBC Capital Markets said.