134519
57255

Business  

Asian stocks skid after arrest

Asian stock prices skidded Thursday following the arrest of a senior official at Chinese telecoms equipment maker Huawei that could derail progress in China-U.S. trade talks.

KEEPING SCORE: Hong Kong's Hang Seng index tumbled 2.6 per cent to 26,117.28 and Japan's benchmark Nikkei 225 fell 2.1 per cent to 21,435.96. Australia's S&P/ASX 200 lost 0.6 per cent to 5,635.60, while South Korea's Kospi sank 1.3 per cent to 2,072.79. The Shanghai Composite index dropped 1.3 per cent to 2,615.82. Shares also fell in Taiwan and all other regional markets.

HUAWEI: The news of Huawei CFO Meng Wanzhou's arrest sent shares sharply lower. Share prices rallied early in the week following President Donald Trump's agreement with his Chinese counterpart Xi Jinping over the weekend to hold off on further retaliatory moves in a festering trade war. But they've since fallen back amid confusion over what the two sides agreed to and whether the deal will enable Beijing and Washington to resolve longstanding, profound differences over technology policy and other issues. China demanded Meng's immediate release and warned the case might lead to retaliation against American and Canadian executives in China.

ANALYST'S TAKE: "We are closely watching the developments in Asia after reports that Canada has arrested the Huawei CFO facing U.S. extradition for allegedly violating Iran sanctions. This headline is quite significant as the U.S. government is attempting to persuade allies to stop using Huawei equipment due to security fears, and this headline could weigh negatively on tech stocks," said Stephen Innes, head of trading at Oanda in Singapore.

TECHNOLOGY STOCK: Technology shares declined, with Japan's Nintendo Co. down 4.3 per cent; Samsung Electronics Co. lost 1.8 per cent; ZTE Corp. declined 5.8 per cent and Japan's SoftBank Group Corp. dropped 4.6 per cent in morning trading.

ENERGY: Benchmark U.S. crude lost 21 cents to $52.68 a barrel. It fell 0.7 per cent to $52.89 per barrel in New York. Brent crude, used to price international oils, declined 10 cents to $61.46.

CURRENCY: The dollar slipped to 112.81 yen from 113.19 yen. The euro inched up to $1.1347 from $1.1342.

 



More Business News

58627
58690
Data from CryptoCompare
Recent Trending
135442
Okanagan Oldies
135694
Castanet Proud Member of RTNDA Canada
135701
Press Room
52157