- Asian equities fell on worries about China's slowing economy and signals that the Federal Reserve may keep interest rates higher for longer to combat inflation.
- Benchmark indexes plummeted across the region, with Hong Kong and Australia suffering the most. The MSCI China Index is on track to reverse all of its gains since last month's Politburo meeting. The losses followed a plunge in US shares on Tuesday, when strong economic data raised concerns that the Fed may keep interest rates high for longer.
- China's economic difficulties remained in the spotlight, with a report revealing that new-home prices declined for the second month in a row in July, fueling concerns about the country's struggling property industry. Following a slew of poor July statistics, JPMorgan reduced its full-year growth prediction for the country to 4.8% from 5%. Macquarie reduced their yuan forecast.
- The offshore yuan rose after the PBoC boosted market optimism with a stronger-than-expected currency fix and its largest injection of short-term cash into the financial system since February.
- Tencent reported profits on Wednesday. Despite Chinese economic upheaval, the firm is set to report its strongest rate of sales growth in more than a year, fueling hope that the internet sector is rising from a historic trough.
