Asia Stocks fell as tension between US and China flares

Asia Stocks fell on Friday as rising tensions between the U.S. and China weighed on investor sentiment.

Hong Kong’s Hang Seng index led losses among the region’s major markets as it plummeted 5.56% to close at 22,930.14.

China is poised to impose a new national security law on Hong Kong after months of anti-government protests in the Chinese-ruled city. The move has sparked concerns that Beijing is tightening its grip on Hong Kong, and there are worries it could trigger another wave of pro-democracy protests.

The draft law was announced at the annual National People’s Congress (NPC), the Chinese parliament, which kicked off on Friday.

The laws would reportedly ban secession, foreign interference, terrorism and all seditious activities aimed at toppling the central government and any external interference in the former British colony.