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Asian markets tumble, China tech hit after Huawei arrest

AFP  |  Hong Kong 

Shares across plunged Thursday, with in and battered after the arrest of a top at Chinese that has also fuelled fears about the recent China-US trade deal.

As and Xi Jinping's tariffs ceasefire last weekend -- which sparked a one-day rally -- fades to a distant memory, investors are back in selling mood as they fret over a range of issues including the state of the world economy, and Brexit.

The chances of trade peace between the US and took a blow Thursday as it emerged had been held in and faces extradition to the over alleged sanctions breaches by the firm.

Meng is also the daughter of company founder Ren Zhengfei, a former Chinese People's

The company had been investigated by US intelligence, who deemed it a national security threat.

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

The sent shudders through and markets, where tech firms were hammered.

Hong Kong-listed ZTE, which was subject to a US banning order earlier his year over security fears before that was reduced to a massive fine, was almost five per cent down.

Market heavyweight was two per cent lower and was five per cent off.

And in Shanghai, Wingtech Technology was four per cent down, sank 2.8 per cent and lost 2.6 per cent.

Taipei-listed tech firms were also hurt. lost 2.2 per cent and Precision was 2.7 per cent lower.

There were also losses for other tech firms in the region, with down three per cent in and almost two per cent lower.

The sector was already under pressure from concerns about future growth and following a surge in recent years.

"This headline is quite significant as the is attempting to persuade allies to stop using equipment due to security fears," said Stephen Innes, of trade at

"Recall that over 100 Chinese companies traded limit down (last month) when broke the US urged allies to blacklist Huawei?" On broader markets was down more than two per cent while lost more than one per cent and shed 1.8 per cent by the break.

was two per cent off, while and also took a hit.

fell 0.5 per cent, gave up 1.2 per cent and was one per cent lower.

"This is what you call playing hard ball," said Michael Every, of financial markets research at in Hong Kong.

"is already asking for her release, as can be expected, but if the charges are serious, don't expect the US to blink."

extended losses ahead of the weekend's meeting of OPEC and non-OPEC production giants, with investors unsure about how much and for how long they plan to reduce output.

The commodity has come under selling pressure, having soared Monday and Tuesday, owing to uncertainty about the reduction plans while Trump has called on OPEC to lift output to keep prices low.

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

First Published: Thu, December 06 2018. 09:35 IST
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