Markets reacted strongly but not catastrophically. US 10-year Treasury yields fell to a four-month low before Ms Pelosi’s arrival as investors fled for safety – then jumped back after her plane landed without incident. Taiwan’s main stock index, after a sharp drop on Tuesday, has since recovered all that ground. Shares in national chipmaker China Semiconductor Manufacturing International Corp, which also fell ahead of the visit, have gained 15 percent since its plane landed and China announced its military drills. The S&P Defense and Aerospace Select Index is up 9% since July 18, when news of Ms. Pelosi’s planned trip first broke, outpacing the S&P 500’s 8% gain.
