Chinese stocks declined in Monday trade amid the ongoing and rising tensions between the United States and China. Meanwhile, other Asian markets advanced.
On Friday, US President Donald Trump raised more tension when he ordered a 10-25% increase for Chinese imports worth around $200B. In China, the Commerce Ministry regarded Trump’s tariffs hikes as a form of “bullying behavior.” The Chinese state media also claimed that the government is in no particular hurry to restart its trade discussions with the US.
Because of the presidential order to bar the use of any telecommunications equipment from companies deemed a threat to US national security, China’s biggest phone manufacturer Huawei is losing some of its friends.
On Sunday, Alphabet-owned Google has reportedly nullified Android license to Huawei Technologies. Huawei’s smartphones will no longer receive Android updates. Moreover, Google will also block Huawei’s new models from getting access to Gmail, the Google Play store, and popular video-streaming website YouTube.
As a result, Chinese markets suffered. Hong Kong’s Hang Seng Index went down 0.6%, the Shanghai Composite fell 0.4%, and the Shenzhen Composite dropped 0.7%. While other Asian markets continue to rise, Japan’s Nikkei went up 0.2%, and South Korea’s Kospi rose 0.7%.
In terms of individual stocks, Nintendo went up while Sony plummeted in Tokyo trading. In Hong Kong, CNOOC continuous to gain, while Sunny Optical and Tencent fell. Samsung and Hyundai Motor rose in South Korea, and Westpac Banking advanced in Australia.