China leads losses in Asia as geopolitical tensions escalate

China led Asian market losses on Tuesday, August 2nd, amid geopolitical tensions in the region due to a supposed visit of US House Speaker Nancy Pelosi to Taiwan.

The Shanghai Composite Index fell 1.55% and the Japanese Shenzhen Index decreased by 1.48% at the close of trading

The Hang Seng Index in Hong Kong declined by 2.3%, with the heaviest stocks such as Alibaba, which fell by 2.06%, and Meituan, which fell by 2.06%.

This came against local media reports that Pelosi will go ahead with her plan to visit Taiwan despite Chinese warnings.

This visit is expected to increase tensions between the United States and China, which has waved the option of a military response. Still, analysts have suggested that Beijing will not risk a reaction that may threaten the situation to develop into a direct confrontation.

Taiwan Semiconductor Manufacturing Company fell 2.38%, while the broader Taiex index fell 1.56%.

The Japanese yen, the safe haven in Asia, was trading at 130.96 against the dollar.

Japan’s Nikkei lost 1.43% while Topix lost 1.77%.