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Asian stock markets stabilized Thursday as the fall in the Chinese yuan slowed and the country’s central bank tried to dampen speculation of further devaluation.

There’s also the threat a cheaper yuan poses to exports and economic growth in other countries.

A man walks past a display showing stock prices in Tokyo August 12, 2015.

He said the statements alleviated concerns of a currency war. On Thursday, the central bank tried to ease fears of more big declines, saying the yuan was close to “market levels”. Shares sank Wednesday, August 12, 2015, as China let its currency fall for a second day...

The PBOC also said on Thursday that it would monitor “abnormal” cross-border flows after the devaluation raised fears that investors would seek to pull capital out of China in anticipation of further falls in the currency.

The Chinese exchange rate for the yuan fell over 1% overnight even as Peoples’ Bank of China (PBOC) officials tried to stem the decline with verbal and monetary support.

Whatever you choose to call it, China’s currency this week roiled global markets after the central bank’s sudden move to devalue it. The decision sparked fears of a new currency war and even drew the ire of Republican presidential candidate Donald Trump.

HONG KONG (AP) – World stock markets rebounded Thursday as the fall in the Chinese yuan slowed and the country’s central bank tried to dampen speculation of further devaluation.

Sources said the move to devalue the yuan reflects a growing clamour within Chinese government circles for a devaluation of perhaps up to 10% to help its struggling exporters.

Echoing similar sentiments to those expressed in a statement released Wednesday evening, the bank noted that a strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves will provide “strong support” to the exchange...

“China does not have the need to start a currency war to gain advantage”, he said.

It will also extend foreign-exchange trading hours in a potential move intended to forge the convergence of the yuan’s rate in China and the rate of the currency traded outside the mainland.

On past precedent, a devaluation of the yuan is usually accompanied by a devaluation of the won, but industries that compete directly with Chinese exports in overseas markets or generate revenues from Chinese tourists are expected to suffer.

The value of the Chinese yuan has been gradually rising for 10 years. They had unrealistic expectations: The market has since slammed into reverse, falling by a third in less than a month and wiping away $4 trillion in wealth….