(Bloomberg) -- Taiwan stocks fell after an expected visit by US House Speaker Nancy Pelosi renewed concerns over an escalation of US-China tensions.

The benchmark Taiwan Stock Exchange Weighted Index declined as much as 2.1%. Shares of Taiwan Semiconductor Manufacturing Co. sank 3.1%.

China views Taiwan as its territory and has warned of consequences if Pelosi’s trip takes place. The visit may worsen the pressure on the island’s stocks, which have been hit by selling by global funds and fears of a US recession.

Pelosi Taiwan Trip to Hurt China Stocks, Boost USTs: Street Wrap

The benchmark equity gauge has climbed more than 7% since reaching the year’s low in July but remains almost 20% below the peak reached early this year.

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Author: Liau Y-Sing