Global Markets Rise on Tuesday 05/21 05:40
Global stock markets were mostly higher Tuesday after anxiety over U.S.
curbs on sales to Chinese tech giant Huawei dragged down Wall Street.
BEIJING (AP) -- Global stock markets were mostly higher Tuesday after
anxiety over U.S. curbs on sales to Chinese tech giant Huawei dragged down Wall
Benchmarks in London, Frankfurt, Shanghai and Sydney advanced. Tokyo and
Hong Kong declined.
Anxiety over U.S.-Chinese trade tension was reignited by Washington's
decision to require export licenses for technology sales to Huawei Technologies
Ltd. American officials say the biggest global maker of network gear for phone
carriers is a security risk, which Huawei denies.
That followed new tariff hikes announced by both sides in a broader battle
over Beijing's technology ambitions and trade surplus.
Both sides are "seemingly digging in for a battle of attrition," said Mizuho
Bank in a report. It said investors are trying to figure out the duration, the
impact on profits and the "toxic atmosphere for American sales in China."
London's FTSE 100 rose 0.5% to 7,353.28 points and Frankfurt's DAX gained
0.5% to 12,098.29. France's CAC 40 was 0.2% higher at 5,368.56.
On Wall Street, futures for the Standard & Poor's 500 index and Dow Jones
Industrial Average were up 0.4%.
In Asia, the Shanghai Composite Index gained 1.2% to 2,905.47 while Tokyo's
Nikkei 225 lost 0.1% to 21,272.45.
Hong Kong's Hang Seng shed just 0.5% to 27,657.24 and Seoul's Kospi advanced
0.3% to 2,061.25. Sydney's S&P-ASX 200 added 0.4% to 6,500.10 and Taiwan also
gained. New Zealand and Singapore retreated.
On Monday, chipmakers led U.S. stocks lower as traders weighed the
implications of the sales controls on Huawei, a major customer.
The U.S. government says suppliers including Huawei and its smaller Chinese
rival, ZTE Corp., pose an espionage threat because they are beholden to China's
ruling Communist Party. Huawei denies it facilitates Chinese spying.
The S&P 500 lost 0.7% and the Dow fell 0.3%. The technology-heavy Nasdaq
composite slid 1.5%.
Apple Inc. skidded after an analyst warned the iPhone maker's growth
prospects could dim as Washington and Beijing spar over trade.
Qualcomm, which gets about 65% of its revenue from China, slumped 6%.
Broadcom, which gets nearly half of its revenue from China, also fell 6%.
ENERGY: Benchmark U.S. crude gained 2 cents to $63.23 in electronic trading
on the new York Mercantile Exchange. The contract gained 29 cents on Monday to
close at $63.21. Brent crude, used to price international oils, shed 20 cents
to $71.77 per barrel in London. It lost 24 cents the previous session to $71.97.
CURRENCY: The dollar gained to 110.12 yen from Monday's 110.06 yen. The euro
declined to $1.1153 from $1.1169.