- Stocks in Asia fell as US-China tensions over Taiwan escalated and concerns about a global economic slowdown grew, supporting demand for treasuries as a safe haven.
- An Asian share index fell more than 1%, with the biggest drops in Hong Kong, China, and Taiwan. US and European futures were also down as the equity market's rebound in July stumbled into August.
- House Speaker Nancy Pelosi is scheduled to visit Taiwan on Tuesday. She would be the highest-ranking US politician to visit the island in the last 25 years. China considers Taiwan to be its territory and has threatened repercussions if the trip takes place.
- The offshore yuan fell and the Taiwanese dollar fell. A relatively firm dollar index and yen gains suggested a cautious mood. gold climbed.
- Treasuries rose, lowering the 10-year yield to 2.52%. Global bond prices have risen in response to data indicating that factory output is contracting or cooling in key economies, while input prices have moderated.
