Hong Kong’s benchmark Hang Seng Index opened in the red, losing over 2.5% in opening trade, following the trend in broader Asian markets after reports emerged that U.S. House Speaker Nancy Pelosi was to arrive in Taiwan on Tuesday. China has issued a strongly worded statement saying it will take firm measures if she does so.
The markets also reacted to a rise in inflation in South Korea. Consumer prices rose by 6.3% in July compared to a year before. The Reserve Bank of Australia is set to announce its rate decision today, with most economists expecting the central bank to hike the cash rate by 50 basis points.
