Asian markets plunge, led by tech stocks, after Huawei exec’s arrest – MarketWatch

Asian stock prices fell Thursday, led by tumbling tech stocks, following the arrest of a senior official at Chinese telecom equipment maker Huawei that could derail progress in China-U.S. trade talks.

Canadian authorities arrested the chief financial officer of Huawei Technologies for possible extradition to the United States, for allegedly violating sanctions against Iran. Meng Wanzhou was detained in Vancouver, British Columbia, on Saturday, but the news is only recently being released.

U.S. stock market futures dropped, with Dow Jones Industrial Average futures

YMZ8, -1.31%

  down more than 300 points, or 1.4%. S&P 500 futures

ESZ8, -1.21%

  and Nasdaq Composite futures

NQZ8, -1.55%

  were each down more than 1%, and CME Group triggered circuit breakers in futures trading to avoid worse losses.

Read: Huawei CFO arrested in Canada at U.S. request for allegedly breaking Iran sanctions

“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.

Also: China may target U.S. executives after arrest of Huawei CFO, this expert warns

Hong Kong’s Hang Seng Index

HSI, -2.62%

  plunged 2.7% in early Thursday trading, with tech stocks taking the brunt. Tencent

0700, -3.80%

 was off 3%, while AAC

2018, -6.14%

  and Sunny Optical

2382, -6.49%

 each fell more than 5%.

Stocks in mainland China dropped as well, with the Shanghai Composite

SHCOMP, -1.54%

  down 1.3% and the smaller-cap Shenzhen Composite

399106, -1.90%

  off 1.4%.

Japan’s Nikkei

NIK, -2.48%

  fell 1.8%, with Nintendo

7974, -4.48%

  and SoftBank

9984, -5.22%

 each down more than 3%. South Korea’s Kospi

SEU, -1.78%

  fell 1.2%, with Samsung

005930, -2.17%

  down 2% and SK Hynix

000660, -3.37%

  falling 2.6%. Taiwan’s benchmark

Y9999, -2.34%

  sank more than 2%, and Singapore stocks

STI, -1.22%

  fell more than 1%.

Losses were less severe in Australia, where the ASX 200

XJO, -0.38%

  was down 0.4%, while New Zealand’s benchmark

NZ50GR, -0.27%

  edged down 0.2%.

Meanwhile, benchmark U.S. crude

CLF9, -0.95%

  lost 21 cents to $52.68 a barrel. It fell 0.7 percent to $52.89 per barrel in New York. Brent crude

LCOG9, -0.81%

 , used to price international oils, declined 10 cents to $61.46.

The dollar

USDJPY, -0.46%

  slipped to 112.81 yen from 113.19 yen.

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