Gold prices hit 2-week high as Trump-Fed feud escalates with Cook firing
* Washington determines China a currency manipulator
* U.S. stock futures down after Wall St's big overnight
losses
* Yuan weakens further in offshore trade to new record low
* U.S. Treasury 10-year yield drops to lowest since Oct 2016
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Shinichi Saoshiro
TOKYO, Aug 6 (Reuters) - Global stocks extended their
already substantial losses and the offshore yuan hit an all-time
low on Tuesday after Washington designated Beijing a currency
manipulator in a rapid escalation of the U.S.-China trade war.
U.S. Treasury Secretary Steven Mnuchin said on Monday the
government had determined that China is manipulating its
currency, and that Washington would engage with the
International Monetary Fund to eliminate unfair competition from
Beijing. The Trump administration's dramatic move against China
hastened the risk aversion seen in global markets this week. On
Monday, China let the yuan slide in response to the latest U.S.
tariff, which is expected to further aggravate trade tensions
between the world's two largest economies. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.75% to its lowest since January.
Japan's Nikkei .N225 shed 2.8%, Australian stocks .AXJO
fell 1.8% and South Korea's KOSPI .KS11 slid 2.5%.
S&P 500 futures ESc1 fell 1.3% in early Asian trade. Wall
Street's major indexes already posted their biggest percentage
drop of the year on Monday on fears of escalation in the
U.S.-China trade war. .N
MSCI's All Country World Index .MIWD00000PUS , which tracks
shares in 47 countries, extended last week's slide and has
slumped 2.5% to a two-month low on Monday.
China's offshore yuan stretched the previous day's big slide
and weakened to 7.1288 CNH=D4 , a fresh record low since
international trading on the Chinese trade began.
The yen, a perceived safe-haven in times of market turmoil
and political tensions, rose 0.4% to a seven-month high of
105.520 JPY= .
Investor demand for other safe-havens such government bonds
also remained high as risk aversion gathered momentum.
The 10-year U.S. Treasury yield US10YT=RR extended sharp
falls overnight and declined to 1.685%, its lowest since October
2016.
(Editing by Sam Holmes)