China asserts power to declare emergency to quell Hong Kong unrest – WSJ

The Wall Street Journal (WSJ) quotes the comments from China’s top office for Hong Kong affairs, as it lays out specific measures for the city’s leader to address protests.

The Office said that “it had legal power to unilaterally declare a state of emergency in the city if unrest continues unabated, while laying out specific measures for the city’s leader to address protests”, per WSJ.

• Hong Kong unrest has become a national security and sovereignty issue for China

Markets seem to be unperturbed by the above statements, as Treasury yields remain on the road to recovery while the Wall Street futures advance further. China stocks trade higher, with Hang Seng up +1.25%. Meanwhile, USD/JPY trades with small gains around the 106 handle.