The Fortescue Metals Group Ltd (ASX: FMG) share price plummeted 7.2% to a 3-month low of $7.09 per share yesterday after China's currency devaluation sent ASX mining stocks lower.
What happened to the Fortescue share price?
The S&P/ASX 200 Index (ASX: XJO) closed 1.9% lower at 6,640.3 points as domestic equities plummeted on China's decision to let its currency devalue below a key level against the US dollar.
China's offshore currency, the yuan, plummeted yesterday to below its 7-yuan per US$1 level for the first time as the government indicated it would not provide support to keep it afloat.
The Fortescue share price was one of many ASX mining stocks to fall lower on Monday, plummeting to its lowest level since the end of March 2019.
The ASX200 index started sinking with first iron ore stocks and then technology stocks tumbling, as 178 of Australia's largest 200 companies saw their share prices closed in the red.
In terms of other Aussie miners, the BHP Group Ltd (ASX: BHP) share price closed 3.6% lower and Rio Tinto Ltd (ASX: RIO) share price fell 3.5% to $91.49 as the S&P/ASX200 Resources Index (ASX: XJR) closed 2.71% lower.
What about the ASX technology stocks?
In terms of the Aussie tech stocks, Appen Ltd (ASX: APX) led the losers amongst the entire ASX200 index as the share price closed 10.6% lower at $26.87 per share.
Fellow ASX growth favourite Afterpay Touch Group Ltd (ASX: APT) lost 7.8% from its share price and fell to its lowest price since mid-July as the ASX's bullish start to the year hit a rough patch.
A falling Chinese currency and weaker performance from U.S. tech stocks saw the domestic tech stocks plummet lower, however, the Appen and Afterpay share prices are still up 109% and 96% this year, respectively.
Where to now for Aussie mining and tech stocks?
It's an untimely correction for some of Australia's biggest and most well-known companies ahead of the August reporting season.
While this could turn out to be a fantastic buying opportunity on some of these big names, I'd expect any signs of slowing growth or missed earnings target to be punished by investors throughout August and September.
