Taiwanese President Tsai Ing-Wen said on Monday that “the status quo of peace and stability in the Taiwan Strait has been threatened by China's expansion of its military intimidations, diplomatic pressure, trade restrictions, and attempts to obliterate Taiwan's sovereignty.”

Additional quotes

“We are letting the world know that Taiwan will be responsible for providing for its own self-defense.”

“There is no place for compromise on the need to protect our national sovereignty and our free and democratic way of life.”

“I want China to understand that engaging in armed conflict is not in anyway an option for our two sides.”

“We anticipate the gradual return of beneficial and regulated cross-strait interpersonal interactions, which will reduce tensions in the Taiwan Strait.”

Market reaction

Risk sentiment remains undeterred by these above headlines, as the S&P 500 futures recover losses during the mid-Asian session.