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Chinese stocks tumbled on Friday, with investors nervous before next week's US-China trade talks, and tech names under pressure following reports that the US is pressuring its foreign allies to quit. they avoid doing business with the Chinese company Huawei Technologies Co.
Do not help feeling, oil prices
CLF9, -2.31%
falls and futures on US stocks
ESZ8, -0.37%
said a lower opening for Friday's abbreviated holiday on Wall Street, which was closed for Thanksgiving on Thursday. Japanese markets were closed for a holiday.
The Shanghai Composite
SHCOMP, -2.49%
decreased by 2%, while the smallest composite of Shenzhen
399,106, -3.66%
dropped 2.6%. According to an article in The Wall Street Journal, the United States is trying to persuade its foreign allies to avoid using Huawei Technologies Co.'s Chinese telecommunications equipment, citing cybersecurity problems.
Telecommunication and technology stocks suffered the biggest losses, with Foxconn Industrial Internet Co.
601138, -4.99%
down 4%, Dr. Peng Telecom & Media Group Co.
600804, -6.83%
more than 5% and ZTE Corp.
000063, -3.37%
down more than 2%.
The news of the Huawei pressure comes just before the trade talks between US President Donald Trump and Chinese President Xi Jinping toG-20 summit in Argentina next week.
"In fact, the best we see of the G-20 is an agreement between the United States and China to keep talking. The history of trade tensions has exceeded the point of a rapid resolution. We anticipate that this risk will remain a theme in 2019 and will continue to weigh on the appetite for riskier assets, "said Jasper Lawler, head of research at the London Capital Group, in a note to clients.
US authorities have warned Americans not to buy Huawei devices in February, saying that they could be used to spy on users. Earlier this year, legislators introduced the Defending United States Government Communications Act, which would prohibit government agencies from using material from ZTE and Huawei.
Losses were more measured in Hong Kong, where the Hang Seng Index
HSI, -0.52%
relaxed by 0.5%. Elsewhere, South Korea Kospi
SEU, -0.60%
fell 0.7%, while Taiwan
Y9999, -0.49%
shares slipped 0.4%. S & P / ASX 200 from Australia
XJO, + 0.44%
increased by 0.4%.
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