The Hang Seng is up by 0.45%, becoming the best-performing index in Asia. The index is trading at $25,176, which is slightly above the intraday low of $24,995. Other indices in Asia are down, with the Shanghai composite falling by 0.70% while the KOSPI is down by more than 0.45%. In Australia, the ASX is up by just 20 basis points.
China set to retaliate
The Hang Seng is gaining today as China prepares to strike back against the United States. In a statement yesterday, the US said that it was forcing China to close its consulate in Houston. The State Department accused the consulate of helping stealing of American intellectual property. In a rejoinder, China asked the US to rescind this decision.
According to the South China Morning Post, China is preparing to close the strategically-important consulate in Chengdu. This is an important consulate that covers the Southwestern region, which includes provinces of Sichuan, Yunnan, Guizhou, Tibet, and Chongqing. According to the paper, this is one of the most American consulates in China because of the vast region it covers.
Tensions between the two super powers have been rising in recent months as the US economy continues to suffer. Trump has blamed the Chinese of not being transparent about the disease that has killed more than 140,000 Americans. As a result, the tensions risk putting pressure on the trade deal that was reached in January.