By Marketwatch and Associated Press
Asian stock markets were mixed in early trading Tuesday, amid reports that the Trump administration will extend a temporary reprieve for an export ban to China’s Huawei Technologies Co.
The Wall Street Journal reported Monday that the U.S. will soon announce a handful of U.S. companies may receive 90-day exemptions to the technology export ban announced last week. That could give some breathing room to Huawei and other companies, and serve as a potential bargaining chip assuming trade talks with China are resumed.
On Tuesday, Huawei’s founder and CEO Ren Zhengfei said in an interview that the potential reprieve is meaningless because the Chinese tech giant has already prepared for the worst, and has stockpiled chips. He also said U.S. export restrictions won’t hinder its development of 5G technology, and that within a few years Huawei’s 5G tech would be superior to that of every other company.
Tech stocks fell on Wall Street over concerns about how the Huawei ban will affect U.S. companies, and potential retaliation by China. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.34% fell 84.10 points, or 0.3%, to 25,679.90, the S&P 500 index /zigman2/quotes/210599714/realtime SPX +2.02% declined 19.30 points, or 0.7%, to 2,840.23, while the tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +2.76% dropped 113.91 points, or 1.5%, to 7,702.38.
On Tuesday, Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK +0.94% fell 0.4%, and Hong Kong’s Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -0.12% was last about flat after making up early losses. The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.25% gained 1% and the smaller-cap Shenzhen Composite /zigman2/quotes/210598015/delayed CN:399106 +0.08% rose 1.3%. South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.21% advanced 0.7%, while benchmark indexes in Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 +1.50% , Singapore /zigman2/quotes/210597985/delayed SG:STI +1.19% and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX +2.02% were mixed, Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.99% declined 0.3%.
Among individual stocks, Nikon /zigman2/quotes/203281219/delayed JP:7731 +2.21% and SoftBank Group /zigman2/quotes/207303954/delayed JP:9984 +0.29% gained in Tokyo trading, while Sony /zigman2/quotes/201361720/delayed JP:6758 +2.94% and shipping company Mitsui OSK Lines /zigman2/quotes/204152844/delayed JP:9104 +1.95% fell. In Hong Kong, AAC /zigman2/quotes/201441510/delayed HK:2018 -0.82% and Bank of China /zigman2/quotes/204682472/delayed HK:3988 0.00% rose while Sino Biopharmaceutical /zigman2/quotes/206921981/delayed HK:1177 +0.25% and casino operator Galaxy Entertainment /zigman2/quotes/202884203/delayed HK:27 -0.24% dropped. Samsung /zigman2/quotes/209800866/delayed KR:005930 +0.74% , which could benefit if Huawei’s supply of U.S. chips is cut off, surged in South Korea. Taiwan Semiconductor /zigman2/quotes/207385621/delayed TW:2330 +1.51% fell in Taiwan. In Australia, BHP /zigman2/quotes/201448516/delayed AU:BHP +3.18% and Beach Energy /zigman2/quotes/200513631/delayed AU:BPT -2.02% declined, while Westpac Banking /zigman2/quotes/203084975/delayed AU:WBC -0.08% rose.