Economics
Huawei Gets Only Partial Reprieve From Tough Trump Sanctions
- Enthusiastic reaction from stock market could be premature
- Some in China are hailing Trump’s reversal as a victory
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Huawei Technologies Co. Ltd got a much needed reprieve from some of the trade sanctions leveled against it by the U.S. when President Donald Trump said over the weekend he would ease restrictions on the Chinese tech giant.
In a sign of market bullishness, shares of Huawei suppliers rallied around the globe Monday, with Taiwan’s Largan Precision surging 10% in Taipei and Taiyo Yuden rising 15% at the close in Tokyo. NeoPhotonics Corp., which gets half of its sales from Huawei according to Bloomberg supply chain data, soared as much as 21% in New York, it’s biggest intraday gain in almost a year. Micron Technology Inc. was also up. Nokia Oyj and Ericsson AB, Huawei’s major 5G gear rivals, opened lower in Europe.