Left Menu
Development News Edition

Asian stocks falter as US placed Huawei in banned list

Devdiscourse News Desk | Hong Kong | Updated: 16-05-2019 17:17 IST | Created: 16-05-2019 14:11 IST
Asian stocks falter as US placed Huawei in banned list
Also Wednesday, US Treasury Secretary Steven Mnuchin repeated to senators his expectation that US officials would meet their Chinese counterparts in Beijing to continue their trade talks.

Asian markets were mixed Thursday as investors weighed hopes for trade talks against Donald Trump's ban on US firms from using foreign telecoms equipment, which has been seen as a kick against China. Investors were jolted in the morning after the president issued an executive order, citing national security grounds, that effectively bars Chinese giant Huawei from the US market.

It was also added to a blacklist restricting US sales to the firm, which will likely ramp up tensions with Beijing as the two economic titans engage in a drawn-out trade war that threatens global growth. The Trump administration has for months tried to persuade allies not to allow China a role in building next-generation 5G mobile networks, warning that doing so would result in restrictions on sharing of information with the United States.

The announcement comes after the US last week hiked tariffs on USD 200 billion of Chinese goods, to which Beijing retaliated in kind, fanning fears their trade war - which seemed all but over just weeks ago - could worsen. "Earlier, the US Commerce Department had added Huawei to a list of entities that prohibits them from acquiring US-made technology and components without a government licence," said OANDA senior market analyst Jeffrey Halley.

"If that's not an escalation in trade tensions, then I don't know what is." Regional markets retreated in early trade but some saw a turnaround as the day went on, taking on a positive lead from Wall Street and Europe, where investors cheered reports the White House was planning to delay tariffs on auto imports while seeking agreements with key trading partners.

Also Wednesday, US Treasury Secretary Steven Mnuchin repeated to senators his expectation that US officials would meet their Chinese counterparts in Beijing to continue their trade talks. Hong Kong ended flat, although ZTE -- another Chinese telecoms equipment provider -- shed more than six per cent.

Shanghai closed 0.6 per cent higher while Sydney put on 0.7 per cent and Singapore added 0.2 per cent. Wellington and Mumbai were also up. Tokyo was rooted in the red, however, closing 0.6 per cent lower, while Seoul and Manila lost more than one per cent and Taipei dropped 0.8 per cent. Bangkok and Jakarta also slipped.

In early trade, London and Paris each dipped 0.3 per cent, while Frankfurt shed 0.4 per cent. The dollar fell against most of its major peers and most higher-yielding currencies, with speculation swirling that the Federal Reserve could cut interest rates to fend off the effects of the trade war and slowing economic growth.

Such talk comes just months after some commentators had been predicting up to three hikes this year. "Depending on how long this standoff with China lasts, that impacts growth for longer and might force the Fed's hand," Esty Dwek, at Natixis Investment Managers, told Bloomberg TV. "I wouldn't expect any big change in the short term, but the possibility of a cut much later in the year has risen."


TRENDING

OPINION / BLOG / INTERVIEW

Rethinking Rural Livelihoods in the Times of COVID-19

The reverse migration caused by COVID 19 pandemic has put an additional burden of about one crore people on Indian villages particularly in the states of Uttar Pradesh, Bihar, Bengal and Odisha. Besides increasing the risk of spreading the ...

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Videos

Latest News

Scientists develop method to reduce coronavirus count in plasma, blood products

Researchers have demonstrated that exposing the novel coronavirus to the vitamin riboflavin and ultraviolet light reduces the viral count in human plasma and whole-blood products, an advance that may help lower the possibility of transmissi...

GST Council meeting likely to be held on June 14

Amid pressure on tax collection, the all powerful GST Council meeting is likely to be held on June 14, the first such meeting after the outbreak of COVID-19 pandemic. Tax collection has been hit due to lockdown imposed since March 25 to con...

SAI to launch Khelo India e-Pathshala, an online coaching programme for grassroot level

The Sports Authority of India SAI is all set to launch Khelo India e-Pathshala in association with National Sports Federations NSF from June 1 with an aim to provide first-ever national-level open online coaching and education programme for...

200-year-old Hindu temple in Karachi a source of livelihood for enterprising Muslim youths

A 200-year-old temple here in Pakistans largest metropolis is not only an important place of worship for the minority Hindu community in the country but also a source of livelihood for the young and enterprising Muslim boys in the area. Mem...

Give Feedback