Asia Pacific markets were mixed as tensions continue between the U.S. and Huawei as well as coronavirus concerns in South Korea.
Chinese markets are up in today’s trading day with the Shanghai composite added 0.36% to about 3,451.09 while the Shenzhen component went up 0.189% to around 13,768.17 despite the U.S. imposing restrictions on Huawei.
In addition, South Korea stocks took a loss with a 2.46% slump after news from Yonhap News Agency reported a COVID-19 outbreak with over 400 identified cases in a church located in northern Seoul.
Huawei being squeezed by U.S. restrictions
It looks like the downfall of the Chinese tech giant is starting to show with the expiration of their U.S. license on Android updates this month. However, they are trying to remedy the situation by introducing their own OS which will be released later on.
As for Huawei’s chipset supply chain, Qualcomm is trying to secure permission from the U.S. to supply them with the necessary materials amid the trade war.
Chinese markets could have more upside
Despite the intense pressure that Huawei is facing against the U.S., China’s market and economy has been resilient so far.
David Chao, a global market strategist for Asia Pacific ex-Japan at Invesco suggested that the second-largest economy could have more room for positive rallies. As per CNBC, he said:
“I think that it’ll continue to be constructive both on the Chinese economy and on the markets. I still think that’s there’s still meaningful upside from current levels.”
The coronavirus pandemic has struck the world with over 21 million cases and China has been slowly recovering their economy. However, there are recent reports on Wuhan that about 90% of recovered COVID-19 patients suffered from lung damage.
Investors await what will happen to the rest of the global markets moving forward.
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