CANADA STOCKS-TSX dives over 1 percent as China devaluation hits resource shares

Tue Aug 11, 2015 12:28pm EDT
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(Adds analyst comment, details on China, market reaction)

* TSX down 186.91 points, or 1.29 percent, at 14,279.48

* All 10 of the TSX's main groups drop

By Solarina Ho

TORONTO, Aug 11 (Reuters) - Canada's resource-laden main stock index sank more than 1 percent on Tuesday, reversing the previous session's bounce, as oil and mining stocks were hit by a rout in commodity prices following China's unexpected move to devalue its currency.

The People's Bank of China devalued the yuan by nearly 2 percent overnight in China's latest attempt to bolster its economy following a string of poor economic data.

Prices for copper and U.S. crude tumbled 4 percent or more, with oil approaching multi-year lows and copper hitting six-year lows on concern that the cheaper yuan will make importing commodities more expensive for China, which is among the world's top consumers of resources.

Energy stocks were down 2.8 percent, while materials, which include miners, were down 1.3 percent.

Petroleum producer Canadian Natural Resources fell 2.1 percent to C$32.45, while Suncor Energy Inc declined 1.4 percent to C$37.17.   Continued...