Asian markets mixed as trade hopes offset Huawei worries

Asian markets were mixed Thursday as investors weighed hopes for trade talks against Donald Trump's ban on US firms from using foreign telecoms equipment, which has been seen as a kick against China.

Investors were jolted in the morning after the president issued an executive order, citing national security grounds, that effectively bars Chinese giant Huawei from the US market.

It was also added to a blacklist restricting US sales to the firm, which will likely ramp up tensions with Beijing as the two economic titans engage in a drawn-out trade war that threatens global growth.

The Trump administration has for months tried to persuade allies not to allow China a role in building next-generation 5G mobile networks, warning that doing so would result in restrictions on sharing of information with the United States.

The announcement comes after the US last week hiked tariffs on USD 200 billion of Chinese goods, to which Beijing retaliated in kind, fanning fears their trade war - which seemed all but over just weeks ago - could worsen.

"Earlier, the US Commerce Department had added Huawei to a list of entities that prohibits them from acquiring US-made technology and components without a government licence," said OANDA senior market analyst Jeffrey Halley.

"If that's not an escalation in trade tensions, then I don't know what is."