By Marketwatch and Associated Press
Nikkei down, but stocks rise in mainland China
Asian stock markets were mixed in early trading Tuesday, amid reports that the Trump administration will extend a temporary reprieve for an export ban to China's Huawei Technologies Co.
The Wall Street Journal reported Monday that the U.S. will soon announce a handful of U.S. companies may receive 90-day exemptions to the technology export ban announced last week. That could give some breathing room to Huawei and other companies, and serve as a potential bargaining chip assuming trade talks with China are resumed.
On Tuesday, Huawei's founder and CEO Ren Zhengfei said in an interview that the potential reprieve is meaningless because the Chinese tech giant has already prepared for the worst, and has stockpiled chips. He also said U.S. export restrictions won't hinder its development of 5G technology, and that within a few years Huawei's 5G tech would be superior to that of every other company.
Tech stocks fell on Wall Street over concerns about how the Huawei ban will affect U.S. companies, and potential retaliation by China. The Dow Jones Industrial Average fell 84.10 points, or 0.3%, to 25,679.90, the S&P 500 index declined 19.30 points, or 0.7%, to 2,840.23, while the tech-heavy Nasdaq Composite Index dropped 113.91 points, or 1.5%, to 7,702.38.
On Tuesday, Japan's Nikkei fell 0.4%, and Hong Kong's Hang Seng was last about flat after making up early losses. The Shanghai Composite gained 1% and the smaller-cap Shenzhen Composite rose 1.3%. South Korea's Kospi advanced 0.7%, while benchmark indexes in Taiwan , Singapore and Indonesia were mixed, Australia's S&P/ASX 200 declined 0.3%.
Among individual stocks, Nikon and SoftBank Group gained in Tokyo trading, while Sony and shipping company Mitsui OSK Lines fell. In Hong Kong, AAC and Bank of China rose while Sino Biopharmaceutical and casino operator Galaxy Entertainment dropped. Samsung , which could benefit if Huawei's supply of U.S. chips is cut off, surged in South Korea. Taiwan Semiconductor fell in Taiwan. In Australia, BHP and Beach Energy declined, while Westpac Banking rose.