Today, China weakened the Remimbi (Yuan) by 1.9% amidst slowing exports and growth. This immediately caused a tremor across all emerging markets currencies, which fell in unison.
This action by the POBC only reaffirms what the market has known all along - that China's economy continues to weaken despite all the stimulus added in the past one year. This will continue to impact the prices of commodities, and I anticipate that oil could stay in the low US$40s for a longer term period.
Stock markets in Asia will continue to weaken but it could provide the best opportune time to invest as the markets trend lower. My favourite markets markets remain Singapore and Hong Kong due to their tax free dividends. But I am in no rush to buy as yet.
Do keep an eye on Nagacorp, Bossini, Capital Retail China and Croesus Retail Trust as they offer good dividend yields. Dvidend stocks are the midst play in the midst of global uncertainties as the lower entry price allows you to enjoy better yields.
However, you evaluate your own tolerance for risks as yours could differ from mine. Always do your own research.
http://www.bloomberg.com/news/articles/2015-08-11/china-weakens-yuan-reference-rate-by-record-1-9-amid-slowdown
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