SINGAPORE — Markets in Hong Kong and mainland China dragged losses in Asia on Tuesday as geopolitical tensions mounted following the visit of US House Speaker Nancy Pelosi to Taiwan.
The Hang Seng index fell 2.94%, with heavyweights like Alibaba and Meituan down 2.83% and 2.96% respectively. The Hang Seng Tech index fell 4.18%.
Mainland China’s Shanghai Composite lost 2.93% and Shenzhen Component lost 3.11%.
Local media citing unnamed sources said Pelosi would continue his visit to Taiwan, a self-governing democratic island that China considers a runaway province.
Regarding Pelosi’s trip, Beijing has warned that its military will “never sit idly by” and “will defend China’s sovereignty and territorial integrity”, Foreign Ministry spokesman Zhao Lijian said Monday during a meeting. of a press conference.
Shares of Taiwan Semiconductor Manufacturing Company fell 2.58%, compared to a loss of 1.86% for the broader Taiex index.
Elsewhere in Asia, the Nikkei 225 in Japan fell 1.59% and the Topix index lost 1.81%.
In South Korea, the Kospi lost 0.9% and the Kosdaq fell around 1%.
Consumer prices in South Korea rose 6.3% in July compared with the same period in 2021, official data showed on Tuesday. That’s in line with expectations and the fastest price acceleration since November 1998, Reuters reported.
The Bank of Korea raised rates by 50 basis points in July.
The Australian S&P/ASX 200 was down 0.36%.
The Reserve Bank of Australia is expected to rise 50 basis points after official data showed prices in Australia rose 6.1% in the second quarter from a year ago.
MSCI’s broadest Asia-Pacific ex-Japan equity index fell 1.55%.
Overnight in the United States, the Dow Jones Industrial Average fell 46.73 points, or 0.14%, to 32,798.40.
The S&P 500 lost 0.28% to 4,118.63 and the Nasdaq Composite lost 0.18% and closed at 12,368.98.
The US dollar index, which tracks the greenback against a basket of its peers, was at 105.289.
The Japanese yen was trading at 130.82 to the dollar, continuing its strengthening trend. The Australian dollar was at $0.7014, after rising above $0.7.
“AUD is higher as USD fell overnight amid weaker US data,” ANZ Research said in a Tuesday note.
Oil futures fell on Tuesday. U.S. crude lost 0.73% to $93.20 a barrel after falling 4.8% in the previous session, and Brent crude lost 0.91% to $99.12 a barrel. The international benchmark was 3.79% lower in the previous session.