Christopher Zenios
Following last week’s gains on Wall Street, Asian markets edged up alongside news of a potential reprieve for Huawei.
A boost in Chip markers has been seen following the comments of US Commerce Secretary Wilbur Ross who stated that licenses allowing US companies to sell to Huawei “will be forthcoming very shortly.” He said his office has received 260 requests for licenses.
The effects on the market can be seen with South Korea’s Kospi rising 1.2%, Hong Kong’s Hang Seng rising 1% and Shanghai Composite up 0.5%.
The reprieve would have an immediate impact on American companies who are restricted in supply Huawei. However, not only will it impact the American market, but global supply chains will also get a boost if the Chinese tech company increase production.
Other tech brands have also seen a boost with South Korean chipmaker Samsung rising 1.8% and SK Hynix up 2%.
The company Huawei, the world’s biggest telecommunications company and a leading smartphone brand has become a pawn in the US-China trade war. Ross went on to comment that the two sides are “making good progress” working on a deal to resolve the tensions. A preliminary “phase one” agreement is expected to come later this month.
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