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China Unrest Fuels Haven Bid as Protests Hurt Growth Outlook

  • Protests may dent new-found optimism toward Chinese economy
  • Yen hits three-month high as funds seek refuge in havens
Bloomberg business news
PBOC Boosts Stimulus to Aid Economy
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A recent rebound in global risk appetite has been dented after rising anger against China’s Covid curbs erupted in protests that risk triggering a government crackdown, while the growing number of infections in the country has tempered optimism that the world’s No. 2 economy will re-open any time soon.

Haven assets such as the Japanese yen and Swiss franc found buyers while stocks and commodities took a hit as the impact of the protests rippled across the globe. While it’s unclear how Beijing will respond to the surge in discontent, the threat of rising social instability is putting traders on edge.