Stocks in Asia are trading lower as investors continue to watch for developments on U.S.-China trade following a recent escalation in tensions over Hong Kong.
Following the signing of bills by U.S. President Donald Trump in support of Hong Kong protesters on Wednesday, investors continue to assess the potential impact on ongoing trade negotiations between Washington and Beijing. China strongly condemned the actions of the U.S., with the country’s Ministry of Foreign Affairs saying Thursday that Washington had “sinister intentions.”
Hong Kong has been rocked by months of civil unrest initially sparked by a since-withdrawn extradition bill.
That comes as an anticipated “phase one” trade deal between the U.S. and China remains elusive ahead of Dec. 15, when additional tariffs on Chinese exports to the U.S. are set to go into effect.
The Japanese yen, often seen as a safe-haven currency in times of market uncertainty, changed hands at 109.53 against the dollar after trading in a range between 109.4 and 109.5 for much of yesterday.
“A larger decline in USD/JPY is a material risk once we get a formal reaction by the Chinese authorities to the US Hong Kong Bill,” Kim Mundy, a currency strategist at Commonwealth Bank of Australia, wrote in a note.
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