China, Hong Kong stocks drop ahead of Pelosi visit

Pelosi’s visit will considerably increase US-China tensions however is unlikely to provide a Chinese response that dangers battle.

Regarding Pelosi’s journey, Beijing warned that its military would “never sit idly by” and can “uphold China’s sovereignty and territorial integrity,” Foreign Ministry spokesperson Zhao Lijian stated at a press convention on Monday.

“Pelosi’s visit will significantly raise US-China tensions but is unlikely to produce a Chinese reaction that risks conflict,” Eurasia Group analysts wrote in a Monday observe.

Taiwan Semiconductor Manufacturing Company’s shares fell 2.78%, in contrast with a 1.87% loss within the wider Taiex index.

The dollar-yen might react to developments, stated Saktiandi Supaat, regional head of FX analysis and technique at Maybank.

“Geopolitical risk is always a factor that we look at in terms of, in the FX space. But it’s something hard to predict,” he instructed CNBC’s “Street Signs Asia” on Tuesday.

The Japanese yen, a safe-haven forex, traded at 130.74 per greenback, persevering with its strengthening development from final week.

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Elsewhere in Asia, the Nikkei 225 in Japan slipped 1.47%, and the Topix index misplaced 1.7%.

In South Korea, the Kospi shed 0.73% and the Kosdaq declined 0.82%.

Consumer costs in South Korea rose 6.3% in July in contrast with the identical interval in 2021, official knowledge confirmed on Tuesday. That’s consistent with expectations and the quickest acceleration in costs since November 1998, Reuters reported.

The Bank of Korea raised charges by 50 foundation factors in July.

Australia’s S&P/ASX 200 was 0.17% decrease.

The Reserve Bank of Australia hiked charges by 50 foundation factors after official knowledge final week confirmed costs in Australia rose 6.1% within the second quarter in contrast with a 12 months in the past.

The Australian greenback appeared to lose floor after the RBA choice and final stood at $0.6992, falling beneath the $0.70 degree.

MSCI’s broadest index of Asia-Pacific shares outdoors of Japan declined 1.54%.

Overnight within the U.S., the Dow Jones Industrial Average misplaced 46.73 factors, or 0.14%, to 32,798.40.

The S&P 500 shed 0.28% to 4,118.63 and the Nasdaq Composite misplaced 0.18% and closed at 12,368.98.

The U.S. greenback index, which tracks the buck in opposition to a basket of its friends, was at 105.239.

Oil futures slipped on Tuesday. U.S. crude shed 0.69% to $93.24 per barrel after settling 4.8% decrease within the earlier session, and Brent crude misplaced 0.77% to $99.26 per barrel. The worldwide benchmark settled 3.79% decrease within the earlier session.

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