Stocks, Yuan Drop Sharply as Trade Spat Intensifies

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Stocks, Yuan Drop Sharply as Trade Spat Intensifies
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The speed of the yuan’s decline took some by surprise. “To breach 7, people were thinking OK, maybe one week or two weeks’ or three weeks’ time. Not Monday morning.”

Stock indexes in Japan and Korea declined more than 2% Monday morning in Asia, while the Chinese yuan weakened beyond the psychologically important 7-per-dollar level, falling as much as 1.9% to 7.1087 per dollar in Hong Kong in early trading.

S&P 500 futures dropped 1.1%.
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