This archive report was first published on 14 August 2019.
On August 14, 2019, protests in Hong Kong against a bill allowing extraditions to mainland China entered their second day, forcing the closure of the city's International Airport.
The airport, one of the world's busiest, suspended check-in services after protesters seized a man, allegedly a mainland Chinese officer, and airport police responded with pepper spray.
Global investors are concerned about China's response to the protests, with the Chinese government labeling them as 'terrorism' and sparking fears of harsh countermeasures.
Marketwatch reported that Hong Kong's Hang Seng Index fell 1.7%, while Japan's Nikkei dropped 1.1%, with the effects of the protests spilling over to Taiwan, Singapore, and Indonesia.
The anxiety among global investors has been exacerbated by strained China-US relationships, with President Trump threatening to increase tariffs on Chinese goods.
As a result, the S&P 500 index on Wall Street saw a slip, followed by massive selling and a nearly 400-point loss in the Dow Jones Industrial Average.
Investors are seeking safe havens for their money, with the increase in investment in US government bonds a clear indication of this trend.
Europe, meanwhile, seems to be benefiting from the strained relationship between China and the US, with its technology sector rising by 1% after the US delayed tariffs on electronics until December 15.
