China's currency may be expected to stay relatively stable, but that's based on myths about the mainland economy, Daiwa said.
The yen fell against the dollar after the Japanese ruling coalition's victory boosted hopes for more monetary stimulus.
China has some room for another RRR cut, but not by much because inflation could pick up towards the year end, UBS WM's Kelvin Tay says.
China needs to ease further in order to hit its GDP targets and incentivize the private sector to invest more, says Commerzbank's Hao Zhou.
The major risks in China are in the restructuring of state-owned enterprises, says Societe Generale's Alain Bokobza.
China's June consumer inflation grew at its slowest since January, while producer prices extended falls, reinforcing expectations for more stimulus.
The dollar traded in a back-and-forth range after the U.S. June jobs report easily beat expectations.
Since Brexit, markets have largely forgotten about the pessimism surrounding China and its financial markets, notes Mark Tinker of AXA Investment Managers.
Sterling rebounded on Thursday after falling two straight days.
China's economy is expected to stabilize, which will be a catalyst for the Hong Kong market, says Haitong Intl Securities Group's Kevin Leung.
The opportunities are in Asian firms with domestic growth drivers that don't rely on macroeconomic trends, says Fidelity International's Medha Samant.
Market sell-off triggers include a contagion effect from weaker European growth and a yuan devaluation, says OCBC Bank's Vasu Menon.
The safe-haven yen hit a 3-1/2 year high against sterling on fears about the impact of Brexit.
The Japanese yen rose almost 1 percent against the euro and dollar while sterling fell to new long-term lows.
A fresh reading on China's services sector for June showed the mainland's rebalancing away from the manufacturing sector was continuing apace.
There are good investing opportunities in the previously oversold Japanese market and U.S. banks, notes Manulife Asset Management's Geoff Lewis.
The Aussie recovered from a wobbly start as commodities rose on expectations that central banks are likely to provide more stimulus.
The Bank of Israel bought "hundreds of millions" of dollars of foreign currency, dealers said, after the shekel continued to strengthen.
China has suffered from outflows from its foreign reserves for months. Goldman Sachs and Standard & Poor's can't agree why.
S&P Global Ratings' Paul Gruenwald says London was actually China's European offshore center for the renminbi but that could change post-Brexit.