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Asian indices break down after arresting the director of Huawei

Asian indices break down after arresting the director of Huawei

Published by InvestorGreg Editorial Team

December 7th, 2018

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%.

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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

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