Toyota Motor Corp. and Honda Motor Co. suppliers sacrificed earnings in China by raising wages to end strikes, and Beijing's decision to allow greater exchange-rate flexibility may slow plans to export vehicles from the nation as the currency appreciates.
China's central bank will allow the yuan more flexibility, it said in a statement Saturday, signaling an end to the currency's two-year-old peg to the dollar. The currency climbed against the dollar at its fastest pace in 20 months and forward contracts jumped.