The New York Times reports: "China on Tuesday accused the United States of committing a 'deliberate provocation' by sending a Navy destroyer into waters claimed by Beijing, adding that such actions would force China to speed up its building program in the South China Sea. 'China will firmly react to this deliberate provocation,' Lu Kang, a spokesman for the Chinese Foreign Ministry, said at a regularly scheduled news conference. He added, 'China will not condone any action that undermines China's security'...The statements came hours after the Lassen, a guided missile destroyer, sailed within 12 nautical miles of Subi Reef, one of several artificial islands that China has built in the disputed Spratly Islands chain. The United States had signaled for weeks that it would undertake the mission, which it called an exercise of the right to freedom of navigation in international waters."
The Wall Street Journal reports: "The MSCI Asia Pacific Index closed Monday at its highest level since Aug. 19 and is on track for its best month since 2009, with a month-to-date gain of 10%. Shares mostly rallied in anticipation of more easing measures by Chinese authorities, announced last week, as well as the prospect of easing by the European Central Bank and Bank of Japan. Tensions in the South China Sea drove investors to the Japanese yen, often perceived as a safe asset. The U.S. dollar weakened to as low as ¥120.48 before bouncing back to ¥120.58, compared with ¥121.10 late Monday in New York. Still, anticipation of easing, which would weaken the yen, at this week's Bank of Japan policy meeting capped the currency's gains."
CNBC reports: "'We remain extremely bullish on China, and we're continuing to invest,' said CEO Tim Cook on Apple's third-quarter conference call, in which the firm reported that iPhone sales saw a 112 percent year-over-year increase there. About 27 percent of Apple's revenue for the quarter came from China, though it was down about 21 percent from the previous quarter. 'Nothing that's happened has changed our fundamental view that China will be Apple's largest market at some point in the future,' said Cook on the call."