Chinese financial sector workers on Tuesday said they weren’t too worried after the U.S. accused Beijing of manipulating its currency in what is becoming a rapidly escalating U.S.-China trade war.
The U.S. government’s announcement on Monday (August 5) that it was labeling China a currency manipulator came hours after China let its yuan currency break through a key support level to an 11-year low, in a sign Beijing is willing to tolerate more currency weakness as Washington threatens to impose more tariffs.
In the wake of that, global stocks extended already substantial losses on Tuesday — the Shanghai Composite Index retreated 1.4%, Japan’s Nikkei shed 0.7%, Australian stocks fell 2.3% and South Korea’s KOSPI slid 0.9%
