Asian indices break down after arresting the director of Huawei

The stock market negatively perceived the news of arresting the financial director of the Chinese company Huawei, Meng Wanzhou, by Canadian authorities.

The leading stock indices of the countries of the Asia-Pacific region (APR) closed today’s trades in the “red zone”, while the shares of high-tech companies showed the maximum decrease.

MSCI Asia Pacific, a composite stock index of the APR, decreased by 1.8%. Nikkei 225, a Japanese index, fell by 1.91%, and wider Topix – by 1.82%. Shanghai Composite, a Chinese index, collapsed by 1.68%; Shenzhen Composite – by 2.17%, and Hong Kong Hang Seng – by 2.47%.

Indian BSE Sensex went down by 1.59%; Australian S&P/ASX 200 – by 0.2%; New Zealand NZX 50 – by 0.3%. The decline of South Korean Kospi reached 1.55%, and that one of Indonesian Jakarta Composite – 0.3%.

The market reacted to the news of arresting Meng Wanzhou, the Chief Financial Officer of Huawei Technologies, a Chinese telecommunications company, in Canada, and she is intended to be extradited to the USA in a case of violating the US sanctions against Iran. Meng Wanzhou is the Deputy Chairman of Huawei Technologies and a daughter of its founder, Ren Zhenfei.

On this news, Tencent, a Chinese Internet giant, lost 5.2% of its capitalization; AAC, a manufacturer of Smartphone components, lost 5.6%; Sunny Optical, a manufacturer of optics, lost 5.5%. Shares of Nintendo, a Japanese manufacturer of game consoles, fell down by 4.1%.

About the author

InvestorGreg Editorial Team

InvestorGreg Editorial Team

The InvestorGreg Editorial Team is a group of financial writers and analysts who cover the worlds of finance and investment. Read more

Recommended Financial Products

Fidelity
A household name, Fidelity has always been known to be a reputable investment firm. In our Fidelity Broker Review, we will examine some of the pros and cons of this broker as well as the fees charged by the broker.
Charles Schwab
Charles Schwab has been one of the leading full-service brokers for decades. They have more than $3 trillion in client assets and there are more than 10.5 million active brokerage accounts.
E*TRADE
ETrade is a broker that has long been at the forefront of online trading. They made their first online trade in 1982. Let’s take a look at the broker offering and see if they are right for you.
Vanguard
Vanguard Brokerage, an excellent choice of broker for low cost longterm investment. The broker offers the lowest expense ratio for index funds and ETF's.

Full list of recommended

Suggested For You

Google Cloud Buys Cornerstone Technology FEB 21, 2020 Google Cloud buys Cornerstone Technology. The purchase will help the Company upgrade the infrastructure and applications of customers in Google Cloud. The exact amount of the business deal is still unknown.
S&P 500 and Nasdaq Was Up, and Dow Declined Due to Concern About Trade JAN 29, 2019 The S&P 500 and Nasdaq indexes closed Thursday’s trade in the positive territory, while the Dow slightly declined, as continuing concerns about a slowdown in the global economy and trade contradictions between the US and China have negated optimism about companies’ reports.
US Stock Indexes Showed the Worst Year Start for 18 Last Years JAN 9, 2019 The beginning of the year was not easy for the US stock markets – Dow Jones and S&P 500 showed the worst start for almost two decades. A sharp decrease in the price of Apple shares had significant impact on the fall of the indexes.
Virus in China Hit Global Financial Markets JAN 22, 2020 Quotes on global stock markets decreased due to concerns about the dissemination of the deadly coronavirus in China. Asian markets affected the most extent.
Gold Continues to Fall in Price on the USD Strengthening FEB 11, 2019 The price of gold falls on Friday in the morning; this trend lasts for six trading sessions in a row against the background of the continuing the USD strengthening against most world currencies, according to the data of trades and analysts’ comments.