China Markets Down; Yuan Drops To Near Eight-Year Low

Chinese stocks were trading slightly lower on Tuesday. The Shanghai Composite Index dropped 8.63 points, or 0.27 percent to 3,201.74.

The China's yuan dropped to its lowest level in almost eight years on Tuesday. The central parity rate of the Chinese yuan dropped 0.30 percent to 6.8495 versus the greenback on Tuesday. In the spot market, the yuan was trading at 6.8596, down 144 pips from the prior session close.

iShares FTSE/Xinhua China 25 Index (ETF) FXI shares dropped 0.61 percent to close at $35.76 on Monday, while SPDR S&P China (ETF) GXC declined 1.38 percent to close at $73.61.

The Dow Jones Industrial Average surged 0.11 percent, to 18,868.69, the S&P500 index declined 0.01 percent to 2,164.20, and the Nasdaq Composite dropped 0.36 percent to 5,218.40.

Oil prices traded higher on Tuesday, with the US WTI crude futures on the NYMEX gaining 1.98 percent to trade at $44.81 a barrel.

Top market movers among the Shanghai Composite index are as follows:

• China Shipbuilding Industry Co Ltd (601989: SHH) shares gained 0.6 percent to 6.80 CNY.
• Shanghai International Port Group Co Ltd (600018: SHH) rose 0.4 percent to 5.28 CNY.
• Kweichow Moutai Co Ltd (600519: SHH) shares rose 0.4 percent to 312.10 CNY.

• China Railway Group Ltd (601390: SHH) shares dropped around 2.2 percent to 9.40 CNY.
• China United Network Communications Ltd (600050: SHH) dropped 1.8 percent to 5.45 CNY.
• CRRC Corp Ltd (601766: SHH) fell 1.7 percent to 9.92 CNY.