Asian shares mostly lower as virus, China-US tensions weigh

Asian shares were mostly lower Wednesday as surging virus counts and China-U.S. tensions weighed on sentiment.

Hong Kong’s Hang Seng dropped 0.3% after authorities arrested dozens of pro-democracy figures, including lawmakers. A move by the Trump administration to further sanction Chinese companies fueled unease over tensions between the two biggest economies.

Shares also fell in Tokyo, Shanghai and Sydney, despite broad gains on Wall Street on Tuesday as stocks regained their footing after starting out 2021 with their worst loss in months amid the worsening pandemic and potentially market-moving U.S. Senate elections.

Political parties and local media said Hong Kong police arrested about 50 pro-democracy figures Wednesday for allegedly violating a national security law by participating in an unofficial primary election last year held to increase their chances of controlling the legislature.

Those arrested on suspicion of subversion included former lawmakers and pro-democracy activists, the South China Morning Post and online platform Now News reported. It was the largest move against Hong Kong’s democracy movement since Beijing imposed the national security law in the semi-autonomous territory in June.

Hong Kong-trade shares in major Chinese telecoms companies China Telecom, China Unicom and China Mobile were mixed after reports said the New York Stock Exchange might opt to delist the three huge companies, complying with an order from the U.S. government, despite having announced on Monday that it would not abide by the request.

In U.S. trading, China Telecom gained 8.8% on Tuesday but lost 2.1% in after hours trading. China Mobile jumped 9.3% but lost 2.2% in after hours trading and China Unicom surged nearly 12%, and then fell 2.9%.

Meanwhile, President Donald Trump signed an executive order banning...