Asian 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 further losses.
Read: Huawei CFO arrested in Canada at U.S. request for allegedly breaking Iran sanctions
"We are 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. 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.
So: China may target U.S. executives after arrest of Huawei CFO, this expert warns
Hong Kong's Hang Seng Index
plunged 2.7% Thursday, with tech stocks taking the brunt. Tencent
which off more than 4%, while AAC
and Sunny Optical
each fell around 6%.
Stocks in mainland China dropped as well, with the Shanghai Composite
down 1.6% and the smaller-cap Shenzhen Composite
fur 2.2%, with Nintendo
each down more than 4%. South Korea's Kospi
1.5% hide, with Samsung
down over 2% and SK Hynix
falling over 3%. Taiwan's benchmark
dropped more than 2%, and Singapore stocks
fell more than 1%.
Losses were less severe in Australia, where the ASX 200
was down 0.2% while New Zealand's benchmark
edged down 0.3%.
Meanwhile, benchmark U.S. Pat. crude
Lost 1% to $ 52.36 a barrel. Brent crude
used to price international oils, declined 0.8% to $ 61.09.
slipped to 112.72 yen from 113.19 yen.
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