Asian shares mixed as Huawei sanctions stir trade fears

18-May-2019 Intellasia | AP | 6:00 AM Print This Post

Asian stocks were mixed on Friday amid worries that US economic sanctions on Huawei would cast a pall on trade negotiations with China.

Hong Kong’s Hang Seng shed 0.4 percent to 28,161.89 while Japan’s benchmark Nikkei 225 jumped 1.6 percent to 21,391.53. The Kospi in South Korea added 0.2 percent to 2,072.27.

The Shanghai Composite lost 1 percent to 2,926.27 and Australia’s S&P ASX 200 advanced 0.7 percent to 6,374.80. Shares rose in Taiwan but fell in Singapore and Indonesia.

An executive order by the Trump administration, aimed at banning Huawei equipment from US networks, took effect on Thursday. The order also subjects the Chinese telecommunications giant to strict export controls. China has threatened to retaliate. It remains to be seen how the move will affect trade negotiations.

Some investors took cues from Wall Street, which closed higher for the third straight day, led by strong performances from technology companies and banks.

The broad S&P 500 index climbed 0.9 percent to 2,876.32 on Thursday. The Dow Jones Industrial Average rose 0.8 percent to 25,862.68 and the Nasdaq composite rebounded 1 percent to 7,898.05. The Russell 2000 index of smaller company stocks was 0.6 percent higher at 1,557.24.

“The street appears to have temporarily given up trying to predict the fluid situation that is US-China trade relations and concentrate on the here and now,” Jeffrey Halley of OANDA said in a commentary.

“The march higher will be tentative at best though with sentiment both incredibly cautious and fragile,” he added.

ENERGY: Benchmark US crude gained 45 cents to $63.32 a barrel in electronic trading on the New York Mercantile Exchange. It picked up 85 cents to $62.87 per barrel on Thursday. Brent crude, the international standard, added 39 cents to $73.01 per barrel.

CURRENCIES: The dollar edged up to 109.86 Japanese yen from 109.85 yen late Thursday. The euro strengthened to $1.1181 from $1.1178.


Category: FinanceAsia

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