Stock markets in the Asia-Pacific region ended trading on Tuesday with a sharp decline, with the exception of the Australian index.
Investors are concerned about the risks of a growing geopolitical crisis in the region due to the expected visit of Speaker of the US House of Representatives Nancy Pelosi to Taiwan.
The issue of Taiwan is one of the most sensitive in US-China relations. China has previously threatened the United States with „serious consequences” if the first visit of such a high-ranking American representative to the island takes place after all in 25 years. While Pelosi’s official program includes visits to Singapore, Malaysia, South Korea and Japan, Taiwanese media previously reported that she would fly to Taipei on Tuesday evening.
„Investors are likely to be on the defensive as the geopolitical situation could heat up in the coming days,” Anderson Alves, an analyst at ActivTrades, said in a note.
The Hong Kong Hang Seng by the close of the session fell by 2.4%, the Shanghai Shanghai Composite – by 2.3%.