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Yuan steadies after PBOC move; Asia stocks set to gain
[SYDNEY] The yuan held on to its gains after a surprise move by the central bank to make it more expensive to bet against the currency triggered a rally in China's currency. Asian stocks pointed to a small advance as earnings seasons rolls on.
The offshore yuan maintained Friday's gains when the People's Bank of China announced a rule tweak in a bid to ease pressure on the yuan. Equity futures signaled a higher open for markets in Japan, Hong Kong and Australia ahead of results from regional heavyweights HSBC Holdings Plc and Softbank Group Corp. US shares rose Friday, when the yield on 10-year Treasuries slipped to 2.95 per cent. The Canadian dollar declined after Saudi Arabia froze all trade and investments with Canada.
China stepped in to try to cushion the yuan after a record string of weekly losses saw the currency closing in on the key milestone of 7 per dollar. Sentiment in US equities got a boost late in Friday's trading session as the White House said officials had held high-level talks with China about trade in the past months and were open to more discussions.