Taiwan's President has publicly urged China to de-escalate its military activities in the region and to commit to a peaceful resolution regarding Taiwan. This statement highlights persistent geopolitical tensions, which transmit through risk appetite and capital flows, particularly impacting assets perceived as vulnerable to cross-strait conflict. Taiwanese equities (TWSE) and related ETFs, along with Chinese H-shares and A-shares, are most exposed due to direct geographical and economic ties, with potential implications for global supply chains in semiconductors. Traders will closely monitor any official responses from Beijing or further military exercises in the Taiwan Strait for shifts in risk perception.
Taiwan’s president appealed to China to cease its military build-up in regional waters and to renounce the use of force targeting Taiwan.
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