Asian stocks fell for a fourth straight day after U.S. equities deepened a global rout sparked by concern over China’s economy.
The MSCI Asia Pacific Index fell 0.1 percent to 126.87 as of 9:15 a.m. in Tokyo. Turmoil has wiped more than $2 trillion from the value of global shares in 2016, the worst start to a year since 2000. All eyes will be on the daily fix of the yuan’s daily reference rate after the People’s Bank of China signaled it’s becoming more tolerant of a depreciating currency as the economy slows.
China’s increasing tolerance for a weaker yuan signaled authorities are struggling to shore up economic growth and rekindled concern last seen in August, when U.S. stocks entered their first correction in four years. The World Bank cut its global growth forecasts for this year and next as China’s slowdown prolongs a commodity slump and contractions endure in Brazil and Russia.