Asia Markets: Asian shares rise as yuan slides by the most in 2 years

Asian stocks finished mostly higher Friday, aided by a drop in the Chinese yuan against the U.S. dollar, but trade uncertainty continued to weigh on global markets.

The Shanghai Composite Index SHCOMP, +2.05% climbed 2.1%, and Hong Kong’s Hang Seng HSI, +0.76% rose 0.8%.

The Chinese yuan USDCNY, -0.0827% hit one-year lows against the dollar Friday after Beijing guided its official exchange rate down by 0.9% to 6.7671 per dollar, the largest retreat in two years. The currency has fallen 2.3% against the dollar in July.

A declining yuan makes Chinese exports less expensive for foreign buyers, but rising protectionism around the globe could limit the ability of export-driven companies to reap its full benefits.

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