The Chinese military has confirmed that it had carried out 'powerful' drills around Taiwan today, adding that the drills are in response to the continued 'political tricks' played by the US with regards to Taiwan. The defence ministry is also out saying now that the visit by US lawmakers is infringing on China's sovereignty and that they will resolutely 'smash' any foreign interference.

So far, it is all a war of words mostly and that will not cause market participants to jump off their seats as such.