Investing.com - Asian shares were mixed on Thursday with investors noting calm returning to markets as the impact of China’s surprise devaluations eases.
The Nikkei 225 rose 0.62% and the S&P/ASX 200 gained 0.51%, but the Shanghai Composite was down 0.62%.
The Chinese yuan inched toward stability on Thursday since a surprise sharp weakening earlier this week led to market volatility, opening flat against Wednesday's close and even slightly stronger than the morning central parity fixing.
On Wednesday, the yuan opened trade at 6.4300, sharply lower than Tuesday's close of 6.3231, following something of a pattern in the two days since the PBOC announced its new central parity fixing method, opening sharply lower to match the drop in the central parity and then hovering around that opening price for the rest of the day.
Thursday's opening price, which failed to match the drop in the fixing, may indicate that the yuan is on its way back to stability. Ma Jun, the chief economist of the PBOC's research bureau, again played down talk of depreciation in state media on Thursday morning, arguing that the currency is near its equilibrium level.
He said the PBOC is more than capable of stabilizing the exchange rate.
The PBOC set the yuan central parity at 6.4010 Thursday, down another 1.1% against
Wednesday's fixing, following Wednesday's 1.6% and Tuesday's 1.86% devaluations.
In Japan core machinery orders for June fell 7.9%, more than the drop of 5.6% expected month-on-month, but the year-on-year pace rose 16.6%, better than of a gain of 16.4% seen.
Earlier, Australia's MI inflation expectations rose to 3.7%, compared to the previous survey showing trimmed mean expectations at 3.4% year-on-year and and the weighted mean at 2.7%, above the previous 2.6%.
Overnight, U.S. stocks were mixed on Wednesday in spite of a late rally, as a high-ranking Federal Reserve official cautioned that the currency interventions by the People's Bank of China this week could have widespread ramifications on the global economy.
During a luncheon address at the Rochester Business Alliance in Western New York, Federal Reserve of New York president William Dudley indicated that the PBOC's 1.9% devaluation of the Yuan might have "huge implications," on economic growth worldwide while emphasizing it is still "very early to judge the full impact" of the monetary policy decision. On Wednesday, the Chinese central bank lowered the value of the renminbi for the second straight day before propping up the currency late in the session when it fell to a four-year low against the dollar.
On Wednesday, after Greece agreed on the framework of a multi-year €86 billion bailout, members of Parliament prepared to debate the provisions of the stimulus package during Thursday night's emergency session. While Greece prime minister was forced to accept key concessions on pension and spending cuts, as well as a reduction in early retirement benefits as part of the accord, the Greek Parliament is still expected to approve the deal. If ratified, the deal could be finalized in time for Greece to meet a €3.2 billion obligation to the European Central Bank on August 20.