Regulation fears spill into currency markets

The S&P/NZX 50 Index fell 5 points, or less than 0.1%, to 12,595.32. Turnover was $202 million.

Financial markets are still being driven by fear of a regulatory crackdown on listed companies from the world’s second biggest economy.

China’s aggressive behaviour had mostly been affecting technology stocks but has begun to impact other assets.

“The regulatory crackdown in China has led to a sharp fall in risk appetite overnight, with equities, rates and commodity currencies all underperforming,” currency exchange OFX said in a note.