A key index of Asian tech stocks fell to a 15-month low on Friday as investors reacted to news of even more blows to US-China ties, Bloomberg reports.
Tensions between the two superpowers deteriorated further last week after Vice President Mike Pence made a speech sharply criticizing Beijing over a whole range of issues, and Bloomberg News reported that the People’s Liberation Army had worked with Chinese suppliers to insert chips into hardware for US clients that gave Beijing back doors into vital US tech infrastructure.
The news sent the MSCI AC Asia Pacific Infotech Index falling to its lowest level since July last year. Lenovo was particularly hard hit, with its stock prices down 23% at one point on Friday before recovering slightly.
According to Bloomberg, investors are now expecting the US-China trade conflict to intensify further over the coming months.