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
down more than 300 points, or 1.4%. S&P 500 futures
and Nasdaq Composite futures
were each down more than 1%, and CME Group triggered circuit breakers in futures trading to avoid worse losses.
“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.
Hong Kong’s Hang Seng Index
plunged 2.7% in early Thursday trading, with tech stocks taking the brunt. Tencent
was off 3%, while AAC
and Sunny Optical
each fell more than 5%.
Stocks in mainland China dropped as well, with the Shanghai Composite
down 1.3% and the smaller-cap Shenzhen Composite
fell 1.8%, with Nintendo
each down more than 3%. South Korea’s Kospi
fell 1.2%, with Samsung
down 2% and SK Hynix
falling 2.6%. Taiwan’s benchmark
sank more than 2%, and Singapore stocks
fell more than 1%.
Losses were less severe in Australia, where the ASX 200
was down 0.4%, while New Zealand’s benchmark
edged down 0.2%.
Meanwhile, benchmark U.S. crude
lost 21 cents to $52.68 a barrel. It fell 0.7 percent to $52.89 per barrel in New York. Brent crude
, used to price international oils, declined 10 cents to $61.46.
slipped to 112.81 yen from 113.19 yen.
Providing critical information for the U.S. trading day. Subscribe to MarketWatch’s free Need to Know newsletter. Sign up here.