Investing.com – Asian equities fell in morning trade on Wednesday as trade jitters continue to simmer ahead of the July 6 deadline when the U.S. tariffs on $34 billion in Chinese goods are due to take effect.
Overnight, U.S. stocks reversed an early climb and ended lower. The S&P 500 stumbled after a Chinese court temporarily banned chip sales by Micron Technology Inc (NASDAQ:MU). in the country.
In Asia, China’s Shanghai Composite and the Shenzhen Component were 0.5% and 0.7% lower respectively by 9:45PM ET (01:45 GMT). The persistent weakness in the yuan remained in focus as the People’s Bank of China vowed to keep the currency stable and not to use it as a weapon in the trade conflict with the U.S.
Yi Gang, governor of the PBOC, said in a statement on Tuesday that the central bank would closely monitor fluctuation in the forex market and would take action to keep the yuan at a stable and reasonable level.
The news was cited as supporting the currency and helped it reversed some of its recent slump.
Hong Kong’s Hang Seng Index slid 0.8%. ZTE Corp received some focus as the company received a temporary reprieve from the U.S. Commerce Department that would allow it to conduct business needed to maintain existing network and equipment in the U.S. The China-based telecommunications equipment company was forced to cease most of its operations back in April after the U.S. imposed a supplier ban and accused the company of breaking an agreement to discipline executives who conspired to evade U.S. sanctions on Iran and North Korea.
Elsewhere, Japan’s Nikkei 225 fell 0.5%, while South Korea’s KOSPI edged up 0.1%.
Down under, Australia’s S&P/ASX 200 slipped 0.4% amid weakness in the financials and information technology subindexes.