Tensions are still brewing surrounding the situation in Hong Kong
Japan is caught in a sensitive situation as prime minister Abe has reiterated 'serious concern' about China enacting the national security law in Hong Kong and also having said that they want to take the lead on issuing a G7 statement on the matter.
So, this is China responding on the matter and much like other geopolitical tensions involving China, the spillover to economic consequences is the real risk for markets.
Chinese president Xi Jinping's proposed trip - originally in April - to Japan was initially postponed by the coronavirus crisis but amid this issue, it looks like it will be an indefinite situation until both sides can see eye to eye again.
