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Asian markets mixed as trade hopes offset Huawei worries

AFP  |  Hong Kong 

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

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

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

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

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

"Earlier, the had added to a list of entities that prohibits them from acquiring and components without a government licence," said

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

Regional markets retreated in early trade but some saw a turnaround as the day went on, taking on a positive lead from Wall Street and Europe, where investors cheered reports the was planning to delay tariffs on auto imports while seeking agreements with key trading partners.

Also Wednesday, repeated to senators his expectation that US officials would meet their Chinese counterparts in to continue their trade talks.

Hong Kong ended flat, although ZTE -- another Chinese telecoms equipment provider -- shed more than six percent.

closed 0.6 per cent higher while put on 0.7 per cent and added 0.2 percent. and were also up.

was rooted in the red, however, closing 0.6 per cent lower, while and lost more than one percent and dropped 0.8 per cent. and also slipped.

In early trade, and each dipped 0.3 per cent, while shed 0.4 per cent.

The dollar fell against most of its major peers and most higher-yielding currencies, with speculation swirling that the Federal Reserve could cut interest rates to fend off the effects of the trade war and slowing economic growth.

Such talk comes just months after some commentators had been predicting up to three hikes this year.

"Depending on how long this standoff with lasts, that impacts growth for longer and might force the Fed's hand," Esty Dwek, at Investment Managers, told TV.

"I wouldn't expect any big change in the short term, but the possibility of a cut much later in the year has risen.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 16 2019. 14:16 IST