The yen rose against its major counterparts this morning (August 19th) as Chinese shares dropped more than two per cent in Shanghai, with the Japanese currency wiping out losses seen yesterday.Although the yen started off weaker in early trade, investors began trimming short positions as the day moved forward as shares posted a depressed performance in China.The Shanghai Composite Index, which tracks China's largest bourse, dropped 3.1 per cent this morning, while the MCSI Asia Pacific Index of regional shares slumped 0.3 per cent.Speaking to Reuters, Takahide Nagasaki, chief FX strategist for Daiwa Securities, explained: "The market is very conscious about movements in Chinese stock markets to see if there is any sign that the Chinese economy could be facing a change for the worse."Meanwhile, riskier currencies such as the Australian and New Zealand dollars were both pushed lower in Asian trading this morning, with the two currencies moving further from the highs posted on Friday (August 14th).