Hong Kong’s Hang Seng fell about 3.5%. Losses were more modest in Tokyo and Seoul, while shares edged up in Sydney. China responded to accusations from President Donald Trump, warning that it will safeguard its sovereignty, security and interests, and threatened countermeasures. The yuan was steady as China’s National People’s Congress began with pledges to sell bonds and omit a GDP target for this year due to uncertainties stemming from the pandemic.
Investors are parsing through initial details to come out of the NPC, China’s biggest political event of the year. Beijing is also preparing to impose national security legislation in Hong Kong, a show of legal force that could exacerbate tensions and threatened to reignite violent protests.
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