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Oct. 26, 2012, 4:59 a.m. EDT

Asia stocks stumble on earnings misses

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By Sarah Turner and V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Asia stocks on Friday took deep losses that worsened the weekly performance for many benchmarks, as weaker-than-expected results from Apple Inc., as well as regional firms such as China Unicom and Canon Inc. sparked a sell-off.

China’s Shanghai Composite Index /zigman2/quotes/206600939/delayed CN:000001 -0.57%  and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -1.47%  each skidded 1.7%, Taiwan’s Taiex  lost 1.8%, Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -2.53%  fell 1.4% and Australia’s S&P/ASX 200 index /zigman2/quotes/210598100/delayed AU:XJO -1.73%  retreated 0.8%.

The day’s steep losses came in the wake of a strong recent performance for some regional markets. Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -2.67% , in particular, fell 1.1% after gaining in the previous 10 sessions.

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Ben Kwong, chief operating officer at KGI Asia, said “investors are shifting the focus to earnings, and the upward trend is losing momentum.”

Kwong said the Hong Kong market in particular was technically overbought after a string of advances, and that profit-taking pressure emerged alongside some weak corporate news. He termed the selling “healthy and expected.”

Taiwan’s Taiex was the biggest decliner of the week, shedding 3.7%. Those losses were followed by a 2.9% drop for the Shanghai Composite, a 2.7% decline for the Kospi, and a 2.2% fall for the S&P/ASX 200. Japan’s Nikkei lost 0.8%, while the Hang Seng Index ended the week fractionally lower.

Effect of earnings

Friday’s trading in Asia began on a subdued note for most regional markets, Apple’s /zigman2/quotes/202934861/composite AAPL -3.17%  earnings fell short of estimates, weighing on its shares in U.S. after-hours trading. A report from U.S. e-retailer Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN -2.12% /zigman2/quotes/210331248/composite AMZN -2.12% was also similarly disappointing. Read: Apple faces tight supply in busy quarter.

A poor set of earnings reports, or outlook, issued by Asian firms added to the selling pressure.

Shares of China Unicom Hong Kong Ltd. /zigman2/quotes/205091392/delayed HK:762 -1.24% /zigman2/quotes/205476740/composite CHU +10.24% tumbled 7.6% as a 27% jump in its third-quarter profit fell short of estimates, leading to a downgrade from Standard Chartered.

BOC Hong Kong Holdings Ltd. /zigman2/quotes/200479222/delayed HK:2388 -2.24% /zigman2/quotes/200048848/composite BHKLY -3.72% fell 2.3% after its results.

Shares of its parent Bank of China Ltd. /zigman2/quotes/204682472/delayed HK:3988 -1.08% /zigman2/quotes/201568493/composite BACHY -1.57% /zigman2/quotes/209359942/delayed CN:601988 -0.32% , meanwhile, were swept away in weak broad markets although the lender posted better-than-expected results. The stock slipped 0.3% in Hong Kong and 1.1% in Shanghai. Read: Bank of China Q3 net profit up 17%.

Maanshan Iron & Steel Company Ltd. /zigman2/quotes/205365330/delayed HK:323 -1.40% /zigman2/quotes/200590525/delayed CN:600808 +0.81%  tumbled 6.9% in Hong Kong and 4.4% in Shanghai after reporting a net loss in the three months ended September, as steel prices dropped in July and August.

/zigman2/quotes/205091392/delayed 762 3.97, -0.05, -1.24%
/zigman2/quotes/204682472/delayed 3988 2.74, -0.03, -1.08%
/zigman2/quotes/207639533/delayed 7751 2,591.00, -54.00, -2.04%
/zigman2/quotes/202054799/delayed 6954 23,035.00, -635.00, -2.68%
/zigman2/quotes/209800866/delayed 005930 72,300.00, -1,400, -1.90%
Year-to-date stock performance
Stocks covered in the chart: 1) China Unicom, 2) Bank of China, 3) Canon, 4) Fanuc, and 5) Samsung

In Tokyo, Canon Inc. /zigman2/quotes/207639533/delayed JP:7751 -2.04% /zigman2/quotes/210242912/composite CAJ -1.49%  fell 3.2% after reporting weak results and lowering its full-year outlook.

Robotics firm Fanuc Corp. /zigman2/quotes/202054799/delayed JP:6954 -2.68% /zigman2/quotes/206262686/composite FANUF +3.25% gave up 3.1% after posting a drop in profit and revenue for the fiscal first half.

The Japanese heavy-manufacturing sector also took an earnings hit following the report, with Hitachi Ltd. /zigman2/quotes/203839937/delayed JP:6501 -2.92% /zigman2/quotes/203416411/composite HTHIF -2.92% losing 2.8% and Fuji Electric Co. /zigman2/quotes/205163888/delayed JP:6504 -1.64%  shedding 7.5%.

Shares of heavyweight Samsung Electronics Co. /zigman2/quotes/209800866/delayed KR:005930 -1.90% /zigman2/quotes/202367843/composite SSNLF +30.66% dropped 2.7% in Seoul despite a record quarterly profit, as concerns mounted that its earnings may have peaked. Read: Samsung posts profit jump but cautious outlook.

Shares of Kia Motors Corp. /zigman2/quotes/206019389/delayed KR:000270 -2.18% /zigman2/quotes/205439169/composite KIMTF +8.21% declined 5.6% after its third-quarter net profit rose 28% from the year-ago period, but fell 24% from the preceding quarter. Read: Kia Motors net profit jumps 28%

Shares of Macquarie Group Ltd. /zigman2/quotes/206727308/delayed AU:MQG -3.22% /zigman2/quotes/209628452/composite MQBKY -4.88% jumped 3.5% as the Australian investment-banking firm’s 18% increase in half-year net profit missed estimates. Read: Macquarie profit misses estimates.

Bourse operator Hong Kong Exchanges & Clearing Ltd. /zigman2/quotes/200234512/delayed HK:388 -1.36% /zigman2/quotes/201215503/composite HKXCY -1.71%  skidded 2% on a weak outlook for its third quarter results.

But not all earnings-related news led to stock losses.

In Tokyo, Advantest Corp. /zigman2/quotes/206869087/delayed JP:6857 -2.87% /zigman2/quotes/207472799/composite SHCAF +3.84% jumped 3.6% after swinging to a profit in the first-half of the year from losses a year earlier.

And in Taipei, shares of Apple’s component supplier, Taiwan Semiconductor Manufacturing Co. /zigman2/quotes/207385621/delayed TW:2330 -1.16% /zigman2/quotes/204359850/composite TSM -3.00% , climbed 3%. The advance came as Barclays upgraded the stock to overweight from equal weight, saying short-term cyclical concerns were already priced in and that the company will maintain its global leadership in metal castings on expected orders from Apple in the first quarter of 2014. Read: Apple puts squeeze on Taiwan’s TSMC.

/zigman2/quotes/206600939/delayed
CN : China: Shenzhen
¥ 17.58
-0.10 -0.57%
Volume: 69.45M
Nov. 26, 2021 3:00p
P/E Ratio
9.57
Dividend Yield
1.02%
Market Cap
¥341.16 billion
Rev. per Employee
¥7.66M
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,936.44
-43.83 -1.47%
Volume: 595,597
Nov. 26, 2021 3:30p
loading...
/zigman2/quotes/210597971/delayed
add Add to watchlist JP:100000018
JP : Nikkei
28,751.62
-747.66 -2.53%
Volume: 0.00
Nov. 26, 2021 3:15p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,279.30
-128.00 -1.73%
Volume: 577,169
Nov. 26, 2021 5:17p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
24,080.52
-659.64 -2.67%
Volume: 1.80M
Nov. 26, 2021 4:09p
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/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 156.81
-5.13 -3.17%
Volume: 76.96M
Nov. 26, 2021 1:00p
P/E Ratio
27.97
Dividend Yield
0.56%
Market Cap
$2572.69 billion
Rev. per Employee
$2.38M
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 3,504.56
-75.85 -2.12%
Volume: 2.99M
Nov. 26, 2021 1:00p
P/E Ratio
68.53
Dividend Yield
N/A
Market Cap
$1777.33 billion
Rev. per Employee
$297,430
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 3,504.56
-75.85 -2.12%
Volume: 2.99M
Nov. 26, 2021 1:00p
P/E Ratio
68.53
Dividend Yield
N/A
Market Cap
$1777.33 billion
Rev. per Employee
$297,430
loading...
/zigman2/quotes/205091392/delayed
HK : Hong Kong
$ 3.97
-0.05 -1.24%
Volume: 25.96M
Nov. 26, 2021 4:08p
P/E Ratio
7.30
Dividend Yield
0.00%
Market Cap
$121.47 billion
Rev. per Employee
$1.34M
loading...
/zigman2/quotes/205476740/composite
US : U.S.: NYSE
$ 6.03
+0.56 +10.24%
Volume: 0.00
Jan. 8, 2021 7:00p
P/E Ratio
8.61
Dividend Yield
3.12%
Market Cap
$17.40 billion
Rev. per Employee
$172,830
loading...
/zigman2/quotes/200479222/delayed
HK : Hong Kong
$ 24.00
-0.55 -2.24%
Volume: 9.80M
Nov. 26, 2021 4:08p
P/E Ratio
10.64
Dividend Yield
5.18%
Market Cap
$253.75 billion
Rev. per Employee
$6.34M
loading...
/zigman2/quotes/200048848/composite
US : U.S.: OTC
$ 61.05
-2.36 -3.72%
Volume: 2,804
Nov. 26, 2021 12:57p
P/E Ratio
10.49
Dividend Yield
5.17%
Market Cap
$32.54 billion
Rev. per Employee
$816,939
loading...
/zigman2/quotes/204682472/delayed
HK : Hong Kong
$ 2.74
-0.03 -1.08%
Volume: 156.96M
Nov. 26, 2021 4:08p
P/E Ratio
3.46
Dividend Yield
8.67%
Market Cap
$1018.62 billion
Rev. per Employee
$3.34M
loading...
/zigman2/quotes/201568493/composite
US : U.S.: OTC
$ 8.74
-0.14 -1.57%
Volume: 38,963
Nov. 26, 2021 12:55p
P/E Ratio
3.17
Dividend Yield
13.69%
Market Cap
$130.61 billion
Rev. per Employee
$427,123
loading...
/zigman2/quotes/209359942/delayed
CN : China: Shanghai
¥ 3.07
-0.01 -0.32%
Volume: 52.96M
Nov. 26, 2021 3:00p
P/E Ratio
4.29
Dividend Yield
6.42%
Market Cap
¥834.76 billion
Rev. per Employee
¥2.95M
loading...
/zigman2/quotes/205365330/delayed
HK : Hong Kong
$ 2.82
-0.04 -1.40%
Volume: 8.18M
Nov. 26, 2021 4:08p
P/E Ratio
2.60
Dividend Yield
5.53%
Market Cap
$32.05 billion
Rev. per Employee
$4.11M
loading...
/zigman2/quotes/200590525/delayed
CN : China: Shanghai
¥ 3.73
+0.03 +0.81%
Volume: 79.78M
Nov. 26, 2021 3:00p
P/E Ratio
4.13
Dividend Yield
3.49%
Market Cap
¥26.26 billion
Rev. per Employee
¥3.66M
loading...
/zigman2/quotes/207639533/delayed
JP : Japan: Tokyo
¥ 2,591.00
-54.00 -2.04%
Volume: 3.69M
Nov. 26, 2021 3:00p
P/E Ratio
13.01
Dividend Yield
3.47%
Market Cap
¥2709.60 billion
Rev. per Employee
¥17.37M
loading...
/zigman2/quotes/210242912/composite
US : U.S.: NYSE
$ 22.46
-0.34 -1.49%
Volume: 136,455
Nov. 26, 2021 1:10p
P/E Ratio
12.13
Dividend Yield
2.87%
Market Cap
$23.95 billion
Rev. per Employee
$162,724
loading...
/zigman2/quotes/202054799/delayed
JP : Japan: Tokyo
¥ 23,035.00
-635.00 -2.68%
Volume: 849,200
Nov. 26, 2021 3:00p
P/E Ratio
30.57
Dividend Yield
1.96%
Market Cap
¥4418.66 billion
Rev. per Employee
¥66.77M
loading...
/zigman2/quotes/206262686/composite
US : U.S.: OTC
$ 204.92
+6.45 +3.25%
Volume: 102.00
Nov. 26, 2021 12:33p
P/E Ratio
29.29
Dividend Yield
N/A
Market Cap
$39.05 billion
Rev. per Employee
$629,603
loading...
/zigman2/quotes/203839937/delayed
JP : Japan: Tokyo
¥ 7,087.00
-213.00 -2.92%
Volume: 3.41M
Nov. 26, 2021 3:00p
P/E Ratio
11.96
Dividend Yield
1.62%
Market Cap
¥6854.91 billion
Rev. per Employee
¥24.88M
loading...
/zigman2/quotes/203416411/composite
US : U.S.: OTC
$ 61.39
-1.85 -2.92%
Volume: 230.00
Nov. 26, 2021 11:48a
P/E Ratio
11.19
Dividend Yield
N/A
Market Cap
$60.58 billion
Rev. per Employee
$234,582
loading...
/zigman2/quotes/205163888/delayed
JP : Japan: Tokyo
¥ 6,000.00
-100.00 -1.64%
Volume: 782,700
Nov. 26, 2021 3:00p
P/E Ratio
15.92
Dividend Yield
1.50%
Market Cap
¥857.03 billion
Rev. per Employee
¥31.74M
loading...
/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
72,300.00
-1,400 -1.90%
Volume: 13.00M
Nov. 26, 2021 3:30p
P/E Ratio
14.01
Dividend Yield
2.00%
Market Cap
₩486501.87 billion
Rev. per Employee
₩2.16B
loading...
/zigman2/quotes/202367843/composite
US : U.S.: OTC
$ 57.75
+13.55 +30.66%
Volume: 0.00
Oct. 13, 2021 3:28p
P/E Ratio
12.67
Dividend Yield
N/A
Market Cap
$388.10 billion
Rev. per Employee
$1.83M
loading...
/zigman2/quotes/206019389/delayed
KR : S. Korea: KRX
80,600.00
-1,800 -2.18%
Volume: 1.52M
Nov. 26, 2021 3:30p
P/E Ratio
7.22
Dividend Yield
1.24%
Market Cap
₩32315.06 billion
Rev. per Employee
₩1.67B
loading...
/zigman2/quotes/205439169/composite
US : U.S.: OTC
$ 30.30
+2.30 +8.21%
Volume: 100.00
Nov. 20, 2017 12:00a
P/E Ratio
3.06
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
$1.42M
loading...
/zigman2/quotes/206727308/delayed
AU : Australia: Sydney
$ 195.28
-6.50 -3.22%
Volume: 1.08M
Nov. 26, 2021 4:10p
P/E Ratio
17.80
Dividend Yield
3.64%
Market Cap
$70.48 billion
Rev. per Employee
$844,584
loading...
/zigman2/quotes/209628452/composite
US : U.S.: OTC
$ 141.73
-7.27 -4.88%
Volume: 2,026
Nov. 26, 2021 12:08p
P/E Ratio
17.20
Dividend Yield
3.18%
Market Cap
$50.23 billion
Rev. per Employee
$604,981
loading...
/zigman2/quotes/200234512/delayed
HK : Hong Kong
$ 448.60
-6.20 -1.36%
Volume: 3.04M
Nov. 26, 2021 4:08p
P/E Ratio
44.49
Dividend Yield
2.04%
Market Cap
$567.56 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201215503/composite
US : U.S.: OTC
$ 57.10
-1.00 -1.71%
Volume: 22,739
Nov. 26, 2021 12:57p
P/E Ratio
43.95
Dividend Yield
1.89%
Market Cap
$72.77 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206869087/delayed
JP : Japan: Tokyo
¥ 9,810.00
-290.00 -2.87%
Volume: 2.08M
Nov. 26, 2021 3:00p
P/E Ratio
24.08
Dividend Yield
1.22%
Market Cap
¥1913.92 billion
Rev. per Employee
¥59.45M
loading...
/zigman2/quotes/207472799/composite
US : U.S.: OTC
$ 11.75
+0.43 +3.84%
Volume: 100.00
Nov. 22, 2021 12:30p
P/E Ratio
10.56
Dividend Yield
N/A
Market Cap
$7.29 billion
Rev. per Employee
$453,139
loading...
/zigman2/quotes/207385621/delayed
TW : Taiwan
NT$ 596.00
-7.00 -1.16%
Volume: 27.79M
Nov. 26, 2021 1:30p
P/E Ratio
26.97
Dividend Yield
1.80%
Market Cap
NT$15454.51 billion
Rev. per Employee
NT$23.57M
loading...
/zigman2/quotes/204359850/composite
US : U.S.: NYSE
$ 117.09
-3.62 -3.00%
Volume: 6.77M
Nov. 26, 2021 1:10p
P/E Ratio
29.76
Dividend Yield
1.30%
Market Cap
$555.42 billion
Rev. per Employee
$800,328
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Sarah Turner is MarketWatch's bureau chief in Sydney. Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau.

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