Asian shares extend losses on US blacklist, spread of virus | National News
People walk by an electronic stock board of a securities firm in Tokyo, Monday, Dec. 21, 2020. Asian shares retreated on Tuesday, Dec. 22, extending losses on growing worries over a new, potentially more infectious strain of the coronavirus that is countering good news over U.S. economic stimulus and vaccines.
Shares retreated in Asia on Tuesday after the U.S. included dozens more Chinese companies in a Commerce Department blacklist in another blow to markets already wracked with uncertainty over the pandemic.
The Shanghai Composite index dropped nearly 2% on Tuesday and other regional markets also were mostly lower.
The Commerce Department announced it was including 103 entities on a new “Military End User” list, including 58 Chinese and 45 Russian companies.
Such a designation requires special licensing for exports and other sales of designated products to the listed companies to prevent certain technologies from being used by foreign militaries in China, Russia or Venezuela, it said.
Many of the companies are related to aviation and shipbuilding. But the list adds to trade and financial sanctions and other controls that have taken relations between Washington and Beijing to their worst level in decades.
In a separate move, on Friday the Trump administration blacklisted China’s top chipmaker, limiting Semiconductor Manufacturing International Corp.’s access to advanced U.S. technology because of its alleged ties to the Chinese military. SMIC denies such ties.
Tokyo’s Nikkei 225 fell 1% to 26,436.39. In Hong Kong, the Hang Seng sank 0.8% to 26,097.79. South Korea’s Kospi declined 1.6% to 2,733.68. In Australia, the S&P/ASX 200 gave up 1.1% to 6,599.60. The Shanghai Composite index shed nearly 64 points to 3,356.78.