Geopolitics Affect Asian Market

Asian markets have started the week off slowly due to investors becoming wary of the China-US relations, explain AvaTrade.

Following the closing of lockdown in China and their markets beginning their recovery, there have been new reasons for Asian market investors to be concerned. Specifically, China’s action in Hong Kong, which, according to AvaTrade, is making traders worried that it could deepen existing tensions between the nation and the USA.

Tensions between China and Hong Kong have been heated for some months now but after a new “national security law” was drafted by China, which has been slated to “bypass the city’s legislature”, protestors have returned to the streets of the area. Due to this, “HSI has now dropped a further 0.50%, while the Shanghai index slid by 0.11%.”

This is not going to help tensions between the US and China either which were already heightened last week when Trump agreed to sell weapons to Taiwan. Taiwan is another nation that is under China’s perceived forced control and so they sympathise with Hong Kong. As such, the move will cause tensions on multiple fronts in Asia.

If you want to learn more about the situation or benefit from the market, then you can do either at AvaTrade now.