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Speaking in parliament on Monday, Japanese Prime Minister (PM) Shinzo Abe that they are watching the situation in Hong Kong with “deep concern” after China passed a new security law for the city.

Key quotes

“Hong Kong is an extremely important partner in terms of both tight economic ties and human relations, and it is important that the original system of ‘one nation, two systems’ be upheld and things proceed stably and democratically.”

“But Tokyo was deeply concerned.”

This comes after Kyodo news agency quoted some US/ UK officials, saying that Japan has decided not to back the US, UK and other countries condemning China’s forceful imposing of a new security law on Hong Kong.

Market reaction

USD/JPY is steadying around 109.50, as the yen ignores the above comments amid resurgent US dollar demand.

The negative open on the European indices could likely underpin the haven bids for the greenback.