It seems I've come to the party a little late, so people have beat me to a substantial amount of sentence-level issues ^_^; Still, I wonder if I can be of some use to you.
Tey ducked under the burly arm of a large man who threw several choice curses at the boy, who cheerfully ignored them. He stopped several steps away from Nendo, hands on his knees, panting in exertion. When he spoke, he sounded annoyed.
I think Tey switched from cheerful to annoyed somewhat abruptly there. I'd recommend choosing one mood or the other, possibly the latter, especially with the bruise Tey got on his shoulder earlier, since I can't think of a way to pull that transition off otherwise.
And as others have pointed out, you tend to use more names instead of pronouns, which made this paragraph slightly hard to read, ironically:
Nendo wasn’t worried that Tey would fail, though. The two had done enough thefts together for Tey to become used to Nendo’s way of doing things, even if it bothered Tey. He could always trust Tey to do exactly what he said… Inhaling deeply, Nendo swept his eyes around the bustling marketplace, his mind racing for a suitable diversion, one that would draw the old man’s attention away from the grill…
I would also caution you about the "magic bombs" that went off in the middle of the market for one reason: those bombs seemed little different than conventional explosives. Granted, it seems imperative that that be the case so it can't be detected just by anybody, but must Nendo be the only one or among the few who recognize magic in that instant? (I haven't read the second part of the chapter, nor the subsequent chapters later, but perhaps that question is answered for me.) If you want to differentiate magic bombs from normal bombs in subtle ways, maybe you could have some people complain of fire or some other unpleasant sensation within their bones, and others insensitive/resistant to magic, well, not.
That aside, I will discount your fears of taking too long to set up/provide description for the story because you performed one very important task: giving your protagonist a conflict right away. He's hungry. The reader has a reason to root for Nendo and Tey straight off, and makes their ploy all the more rewarding when they pull it off -- regrettably, not for long. I also admire how you built a different setting by mentioning the names of places, inventing food and currency, and describing a river no Earth civilization would want to live near -- I was reminded of China Mieville's New Crobuzon. My favorite approach to developing civilizations is figuring out what kinds of words they consider profane, whether made up as parodies of existing cuss words, or deciding what is considered taboo. For instance, gambling can be a horrible thing to one culture, so words associated with gambling are vulgar, but scatological words are less offensive.
I very much look forward to reading more of your stuff but I'm afraid I have to break it off here. Yard work really sucks.
=Hyun
