The cat is out of the bag and Taiwan is not shying away. Taiwan’s premier, Su Tseng-chang, is saying that they are welcoming visits by any foreign guests and that the government will make the most appropriate arrangements for such an event.

Meanwhile, the Taiwan defence ministry is out to say that they have the determination and confidence to ensure national security. Things are going to be spicy as US House speaker, Nancy Pelosi, will be due in Taipei later in the day. The response by China here will be the key variable to be mindful about. That in turn will have an impact on risk sentiment in markets.