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Home / Business / Asian markets plunge, led by tech stocks, after Huawei exec's arrest

Asian markets plunge, led by tech stocks, after Huawei exec's arrest



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

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     YMZ8, -1.29%

down more than 300 points, or 1.4%. S & P 500 futures

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     ESZ8, -1.20%

and Nasdaq composite futures

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     NQZ8, -1.58%

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

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     HSI, -2.67%

plunged 2.7% Thursday, with tech stocks taking the brunt. Tencent

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     0700, -4.36%

which off more than 4%, while AAC

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     2018, -5.59%

and Sunny Optical

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     2382, -5.74%

each fell around 6%.

Stocks in mainland China dropped as well, with the Shanghai Composite

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     SHCOMP, -1.51%

down 1.6% and the smaller-cap Shenzhen Composite

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     399106, -1.89%

off 2.7%.

Japan's Nikkei

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     NIK, -2.29%

fur 2.2%, with Nintendo

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     7974, -4.18%

and SoftBank

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     9984, -5.62%

each down more than 4%. South Korea's Kospi

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     SEU, -1.58%

1.5% hide, with Samsung

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     005930, -2.29%

down over 2% and SK Hynix

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     000660, -3.08%

falling over 3%. Taiwan's benchmark

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     Y9999, -2.34%

dropped more than 2%, and Singapore stocks

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     STI, -1.29%

fell more than 1%.

Losses were less severe in Australia, where the ASX 200

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     XJO, -0.19%

was down 0.2% while New Zealand's benchmark

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     NZ50GR, -0.27%

edged down 0.3%.

Meanwhile, benchmark U.S. Pat. crude

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     CLF9, -0.95%

Lost 1% to $ 52.36 a barrel. Brent crude

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     LCOG9, -0.80%

used to price international oils, declined 0.8% to $ 61.09.

The dollar

                            
                            
                                  
      
      
      
      
      
      
      
      
      
                            
                                     USDJPY, -0.36%

slipped to 112.72 yen from 113.19 yen.

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