Stocks mixed on fears Huawei case could hinder trade talks

Annabelle Liang, The Associated Press</span>
Published Tuesday, January 29, 2019 2:52AM EST
Last Updated Tuesday, January 29, 2019 5:25AM EST

SINGAPORE -- World markets were mixed on Tuesday after the U.S. Justice Department unsealed criminal charges against China's Huawei, its subsidiaries and a top executive ahead of trade talks in Washington.

KEEPING SCORE: Germany's DAX slipped 0.1 per cent to 11,202.52 and France's CAC 40 added 0.4 per cent to 4,908.63. Britain's FTSE 100 rebounded 1 per cent to 6,816.08. Wall Street was set for early losses. The future contract for the Dow Jones Industrial Average dropped 0.3 per cent to 24,413.00. S&P 500 futures lost 0.2 per cent to 2,637.30.

ASIA'S DAY: Hong Kong's Hang Seng index lost 0.2 per cent to 27,531.68 and the Shanghai Composite index fell 0.1 per cent to 2,594.25. Japan's Nikkei 225 index closed 0.1 per cent higher at 20,664.64 after tumbling earlier in the day. The Kospi in South Korea gained 0.3 per cent to 2,183.36. Australia's S&P ASX 200, reopening after a holiday, eased 0.5 per cent to 5,874.20. Stocks fell in Taiwan and throughout Southeast Asia.

HUAWEI CHARGES: China called on Washington on Tuesday to "stop the unreasonable crackdown" on Huawei, warning it would defend its companies after the U.S. escalated pressure on the tech giant by indicting it on charges of stealing technology and violating sanctions on Iran. That followed Monday's indictment by the Justice Department of Huawei and its chief financial officer, Meng Wanzhou, on charges of stealing technology and violating sanctions on Iran. The Chinese government also urged the U.S. to drop its request to extradite Meng from Canada, where she was arrested on Dec. 1.

U.S.-CHINA TALKS: American and Chinese negotiators will sit down for two days of trade talks starting Wednesday in Washington. According to Bloomberg, Treasury Secretary Steven Mnuchin said at a briefing Monday that President Donald Trump is set to meet Chinese Vice Premier Liu He. While Trump's presence may indicate that the U.S. is serious about striking a deal, charges against Huawei could cast a cloud over negotiations going forward.

ANALYST'S TAKE: Charges against Huawei "illustrate the risks attached to the U.S.-China relationship," DBS Group Research strategists Philip Wee and Eugene Leow said in a commentary. "The actions by the DOJ show that it would not be enough for China to buy more U.S. goods. America wants China to make structural reforms especially on its intellectual property practices."

BREXIT PLAN: Lawmakers will debate and vote Tuesday on "Plan B" for Britain's impending exit from the European Union. They may also try to amend it and send Prime Minister Theresa May down a different path. The current plan, which May concocted after talking to supporters and opposition politicians, looks a lot like the original that was rejected by 432 votes to 202 earlier this month. Britain is set to leave the bloc exactly two months from now, with or without a divorce deal.

ENERGY: Benchmark U.S. crude added 43 cents to $52.42 per barrel in electronic trading on the New York Mercantile Exchange. It dropped $1.70 to settle at $51.99 per barrel on Monday. Brent crude, used to price international oils, rose 57 cents to $60.38 per barrel. It lost $1.78 to $59.81 per barrel in London.

CURRENCIES: The dollar was trading at 109.41 yen up from 109.35 yen late Monday. The euro strengthened to $1.1439 from $1.1428. The British pound rose to $1.3161 from $1.3153.

Let's block ads! (Why?)

Bagikan Berita Ini