It's a whole new ballgame after Huawei arrest

Galtero Lara
Diciembre 6, 2018

USA stock futures and Asian shares tumbled on Thursday after Canadian authorities arrested a top executive of Chinese tech giant Huawei for extradition to the United States, fanning fears of a fresh flareup in tensions between the two superpowers. Add Stock Market as an interest to stay up to date on the latest Stock Market news, video, and analysis from ABC News. But trading on U.S. futures had to be stopped several times overnight after high volatility led to huge price swings.

OPEC countries gathered in Vienna Thursday to find a way to support the falling price of oil.

Adrian Lowcock, Head of Personal Investing at Willis Owen, said: "Optimism over a ceasefire in the US-Chinese trade war has proven very short-lived with the arrest of Huawei's CFO in Canada, putting a reconciliation in greater doubt".

As well as the CFO, she is deputy chairwoman of Huawei and a daughter of the company's founder. That further shook markets on Thursday, a contrast from the start of the week when investors were in a buoyant mood on eased tensions.

It is not clear whether President Donald Trump knew about the arrest in advance.

However, the arrest drew a swift response from China, which said it "firmly opposes and strongly protests" the move, adding it had urged Canada and the U.S. to "immediately correct the wrongdoing".

The arrest is believed to be related to alleged violations of U.S. sanctions against Iran though there has been no official statement from Washington.

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A newspaper featuring a front page story about the meeting between U.S. President Donald Trump and Chinese President Xi Jinping at a news stand in Beijing on December 3.

The Meng arrest wasn't the only thing roiling the Asian markets today-Apple suppliers' shares have tumbled again after camera-lens supplier Largan Precision revealed a 28% fall in year-on-year monthly revenues. It should increase interaction with the US and exert pressure when necessary. It later dropped another 325 points. Nasdaq futures are plunging 2.3%. Taiwan Semiconductor Manufacturing Company lost 2.2 percent and Hong Hai Precision was 2.7 percent lower. Elsewhere, Japan's Nikkei 225 fell 1.91% while South Korea's Kospi closed down 1.55%.

"The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim", read a statement released by the Chinese Embassy in Canada.

The company also said it was "not aware of any wrongdoing" by Meng.

The probe of Huawei is similar to one that threatened the survival of China's ZTE Corp, which pleaded guilty in 2017 to violating U.S. laws that restrict the sale of American-made technology to Iran. David Mulroney, a former Canadian ambassador to China, said U.S. and Canadian business executives could face reprisals in China.

On Wednesday, Beijing's choice of representative at the funeral of former USA president George H.W. Bush in Washington also reflected those tensions. Khalid Al Falih, the kingdom's energy minister, told reporters that a cut of 1.3 million barrels per day is "excessive."

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