Asian markets were mixed Wednesday as concerns over China’s proposed national security law for Hong Kong overshadowed optimism for a post-pandemic recovery.
Hong Kong’s Hang Seng index dropped 0.8% by late afternoon, while Shanghai was down 0.3%. The S&P/ASX in Sydney lost five points for the day but was essentially unchanged percentage wise.
Japan’s Nikkei index ended its trading day 0.7% higher, Taiwan’s TSEC closed out 0.1% higher, and Seoul’s KOSPI gained 1.4 points but was also flat percentage wise.
The United States and other Western nations have denounced the proposed national security law, which would prevent and punish acts of “secession, subversion or terrorism activities.” Business groups have expressed concern the law could weaken Hong Kong’s status as a global financial hub.
U.S. President Donald Trump has threatened to take action against Beijing if the law is approved, adding to increasing tensions between the world’s two biggest economies.
Oil markets are also trending downward Wednesday, with U.S. crude selling at $33.74 per barrel, down 1.7%, while Brent crude, the international benchmark, is also down 1.7%, selling at $35.53 per barrel.
Meanwhile, European indexes in London, Paris and Frankfurt all began their trading sessions in positive territory, while all three major U.S. indexes are higher in futures trading.
