Japan’s Suga: China's reported move on Hong Kong 'regrettable

When asked about reports that China's parliament had passed the Hong Kong national security law on Tuesday, Japan’s Chief Cabinet Secretary Yoshihide Suga confirmed that China’s move was "regrettable" and undermined credibility in the 'one country, two systems' formula of governance.

Additional quotes

"We will continue to work with the countries involved to deal with this issue appropriately."

“Stable relations between the two global powers (US and China) were vital for regional and global security.”

Market reaction

The risk-on sentiment is stabilizing in Asia despite the Hong Kong news, as the focus shifts back on the narrative of a faster economic rebound ahead of the first-tier global macro-economic releases.

AUD/USD is advancing further to regain 0.6900 while USD/JPY is challenging highs near 107.75. S&P 500 futures trades with 0.20% gains while Asian equities rally over 1.50% so far.