Tech stocks rally in Asia after news that a Huawei reprieve could come soon
Posted November 3, 2019 9:17 p.m. EST
CNN — Asian markets edged up on Monday, following last week's gains on Wall Street as well as news of a potential reprieve for Huawei.
South Korea's Kospi rose 1.2%, Hong Kong's Hang Seng rose 1%, and the Shanghai Composite was up 0.5%. Japan markets are closed for a holiday.
Chip makers got a boost after US Commerce Secretary Wilbur Ross told Bloomberg on Sunday that licenses allowing US companies to sell to Huawei "will be forthcoming very shortly." He said his office has received 260 requests for licenses.
That reprieve would have an immediate effect on American companies restricted from supplying to Huawei, but global supply chains would also get a lift if the Chinese tech company were to ramp up production.
South Korean chipmaker Samsung rose 1.8%. SK Hynix was up 2%.
Huawei, the world's largest telecommunications company and a leading smartphone brand, has become a pawn in the larger US-China trade war. Ross told Bloomberg 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.