Possible scenario
Diplomacy Stabilizes
15%
+1.1%
A less confrontational path emerges if both governments decide the costs of miscalculation are too high before China’s 2027 military benchmark. This would not settle Taiwan’s status but could reduce near-term crisis risk and support risk assets tied to Asian supply chains.
What it moves
- Technology+1.5%
- Consumer Cyclicals+1.0%
- Riskier companies' borrowing costs
- Market volatility
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