(Adds analyst comment, updates prices)
* Washington determines China a currency manipulator
* U.S. stock futures down after Wall St's big overnight
losses
* Yuan weakens further in offshore trade to new record low
* U.S. Treasury 10-year yield drops to lowest since Oct 2016
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Shinichi Saoshiro
TOKYO, Aug 6 (Reuters) - Global stocks extended their
already substantial losses and the offshore yuan hit an all-time
low on Tuesday after Washington designated Beijing a currency
manipulator in a rapid escalation of the U.S.-China trade war.
U.S. Treasury Secretary Steven Mnuchin said on Monday the
government had determined that China is manipulating its
currency, and that Washington would engage the International
Monetary Fund to eliminate unfair competition from Beijing.
The Trump administration's dramatic move against China
hastened the risk aversion seen in global markets this week. On
Monday, China let the yuan slide in response to the latest U.S.
tariffs, which are expected to further aggravate trade tensions
between the world's two largest economies. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.75% to its lowest since January.
Japan's Nikkei .N225 shed 2.7%, Australian stocks .AXJO
fell 2.6% and South Korea's KOSPI .KS11 slid 1.5%.
"Following the latest development in the U.S.-China trade
war, all the economic views and moves in the currency and equity
markets are driven by a 'risk off' mentality which in turn is
boosting bonds," said Kota Hirayama, senior emerging markets
economist at SMBC Nikko Securities.
"The fact that U.S. yields are falling sharply even though
Federal Reserve Chairman Jerome Powell did not signal further
easing explains it all."
S&P 500 futures ESc1 fell 1.3% in early Asian trade. Wall
Street's major indexes already posted their biggest percentage
drop of the year on Monday on fears of escalation in the
U.S.-China trade war. .N
MSCI's All Country World Index .MIWD00000PUS , which tracks
shares in 47 countries, extended last week's slide and has
slumped 2.5% to a two-month low on Monday.
China's offshore yuan stretched the previous day's big slide
and weakened to 7.1288 CNH=D4 , a fresh record low since
international trading on the Chinese trade began in 2010.
The yen, a perceived safe-haven in times of market turmoil
and political tensions, was up 0.1% at 105.850 per dollar after
touching a seven-month high of 105.520 JPY= .
Investor demand for other safe-havens such government bonds
also remained high as risk aversion gathered momentum.
The 10-year U.S. Treasury yield US10YT=RR extended sharp
falls overnight and declined to 1.672%, its lowest since October
2016.
(Editing by Sam Holmes)