Asia is on edge over the implications of an international court decision on Tuesday in a case taken by the Philippines against China's territorial claims in the South China Sea.

Australia has taken a cautious approach to the issue, supporting the Philippines' right to take the case to the Permanent Court of Arbitration (PCA) in The Hague but refraining from conducting freedom of navigation exercises, despite pressure from the US. However, the court finding may force Australia to take a clearer position amid the threat of splits between some of its closest economic and strategic partners.