Investing.com - Asian markets fell in morning trade on Wednesday following reports that an impeachment inquiry will be started against U.S. President Donald Trump. The president’s angry rhetoric over China also sparked concerns of a worsening Sino-U.S. trade relationship.
China’s Shanghai Composite and the SZSE Component fell 0.7% and 1.1% by 10:33 PM ET (02:33 GMT). Hong Kong’s Hang Seng Index was down 1.0%.
Japan’s Nikkei 225 declined 0.4%. South Korea’s KOSPI dropped 0.6%.
Down under, Australia’s ASX 200 fell 0.5%.
Political uncertainty in the U.S. rose after House Speaker Nancy Pelosi announced overnight a formal impeachment inquiry against Trump.
“The actions of the Trump presidency revealed the dishonorable fact of the president’s betrayal of his oath of office, betrayal of our national security and betrayal of integrity of our elections,” Pelosi said in remarks to the nation. “Therefore, today, I’m announcing the House of Representatives is moving forward with an official impeachment inquiry. I’m directing our six committees to proceed with their investigations under that umbrella of impeachment inquiry.”
The move came as the president promised to release a transcript of his phone call with Ukraine's president, which sparked questions of whether the Administration was trying to bully the eastern European country into investigating former Vice President Biden and his son Hunter Biden.
Trump quickly fired off multiple tweets in response to Pelosi, calling her accusation as “witch hunt” and “presidential harassment.”
“Such an important day at the United Nations, so much work and so much success, and the Democrats purposely had to ruin and demean it with more breaking news Witch Hunt garbage. So bad for our Country!” he said.
Meanwhile, renewed Sino-U.S. trade concerns are also weighing on investor sentiment.
Speaking to the United Nations General Assembly in New York, Trump said he will not accept a “bad deal” in trade talks with China, while slamming Beijing for “unfair trade practices.”
“Hopefully we can reach an agreement that will be beneficial for both countries. But as I have made very clear I will not accept a bad deal for the American people,” Trump said.