U.S. market indices have fallen in Thursday deals as the wider market recoils once more following renewed intensity in trade tensions between the United States and China.
Dow futures posted a loss of 368 points with both the S&P and Nasdaq indexes also indicating lower at 148 and 120 respectively. The DJIA is 1.43% lower while the Nasdaq Composite is down 1.55%. The S&P has shed 0.91%.
The tumbles follow reports that surfaced late Wednesday indicating that the U.S. administration had plans to impose restrictions on Chinese Surveillance equipment firm Hikvision. The media reports alleged that the U.S. was planning to blacklist and ban the Chinese tech company from purchasing U.S. components.
It is feared that this move will further escalate the trade war between Washington and Beijing, with Chinese president Xi Jinping noting earlier today that Washington needs to tone down on its threats.
An anonymous executive from Hikvision said that the company has not received any communication regarding the U.S. planned restrictions.
The executive further said that Hikvision uses chips which are commercialized and most of their suppliers are based in China with very few in the U.S.
Elsewhere, Japan’s Nikkei declined as the uncertainty in Beijing and Washington saw technology shares, edge lower. Nikkei’s share average closed lower, 0.6% down at 21,151.14.
While index heavyweight SoftBank tanked over 5% to lead the drag, tech shares also faced heavy selling as reports of Hikvision surfaced.
In South Korea, the KOSPI fell on Thursday following renewed anxiety trade conflicts will spill over to Korea, especially with regard to the ban on Huawei. The KOSPI index ended down 0.26% or 5.27 points lower at 2,059.59.
There have been reports that tech companies in the U.K and in South Korea have cut links or suspended business with the Chinese telecoms giant, and that has only worked to drive market sentiment down.
LG Uplus Corp shares lost 6.4% as allegations in local media claimed Washington had lobbied Seoul to boycott Huawei products.
In Australian, stocks traded lower with the ASX 200 index falling 18.90 points or 0.3% to 6,491.80.