(Aug 10): Tencent Holdings Ltd. added to Friday’s sharp decline to start the week, helping lead weakness in technology shares after the U.S.’ move to ban residents from doing business with the company’s WeChat app.
The stock fell as much as 4.6% Monday, approaching Friday’s lowest level, before finishing morning trade down 3.3%. Tencent lost US$35 billion of market value to end last week as investors weighed the vaguely worded order from President Donald Trump, which initially triggered fears that it applied to a number of the internet giant’s operations.
Tech stocks in Hong Kong led declines in the city Monday, with the Hang Seng Tech Index falling as much as 3.6%. The sector was also among the weakest performers in China, with the ChiNext Index dropping more than 1%. Suppliers to Apple Inc. saw some of the biggest declines.
Deteriorating relations between the U.S. and China are raising investor concerns about the geopolitical impact on economies and markets. In addition to the the WeChat ban, Trump signed an order to prevent U.S. residents from doing business with ByteDance Ltd.’s TikTok app starting in six weeks.