The Taiwan Affairs Office of China accuses Japan’s Self-Defense Force of sending ships into the Taiwan Strait to provoke, undermining bilateral political ties and endangering China’s sovereignty.

The Taiwan Affairs Office of China has accused Japan's Self-Defense Force of sending ships into the Taiwan Strait, claiming this action provokes tensions and threatens China's sovereignty. This development could heighten geopolitical risk in the region, impacting investor sentiment and risk appetite, particularly in Asian markets. Assets most exposed include Chinese and Taiwanese equities, as well as shipping companies operating in the Strait, which may face increased operational risks. Traders will be closely watching for any official responses from Japan or further military movements in the region, as these could escalate the situation and influence market dynamics.

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