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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 -0.06%  and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -1.49%  each skidded 1.7%, Taiwan’s Taiex  lost 1.8%, Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.39%  fell 1.4% and Australia’s S&P/ASX 200 index /zigman2/quotes/210598100/delayed AU:XJO -0.33%  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 -1.09% , 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 -2.26%  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 -2.65% /zigman2/quotes/210331248/composite AMZN -2.65% 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 -1.04% /zigman2/quotes/205476740/composite CHU -0.46% 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 -0.90% /zigman2/quotes/200048848/delayed BHKLY +0.86% fell 2.3% after its results.

Shares of its parent Bank of China Ltd. /zigman2/quotes/204682472/delayed HK:3988 -0.93% /zigman2/quotes/201568493/delayed BACHY +0.10% /zigman2/quotes/209359942/delayed CN:601988 -0.28% , 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 +0.34% /zigman2/quotes/200590525/delayed CN:600808 -0.71%  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 6.69, -0.07, -1.04%
/zigman2/quotes/204682472/delayed 3988 3.19, -0.03, -0.93%
/zigman2/quotes/207639533/delayed 7751 2,776.00, -11.50, -0.41%
/zigman2/quotes/202054799/delayed 6954 20,180.00, -290.00, -1.42%
/zigman2/quotes/209800866/delayed 005930 59,200.00, -800.00, -1.33%
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 -0.41% /zigman2/quotes/210242912/composite CAJ -1.32%  fell 3.2% after reporting weak results and lowering its full-year outlook.

Robotics firm Fanuc Corp. /zigman2/quotes/202054799/delayed JP:6954 -1.42% /zigman2/quotes/206262686/delayed FANUF -2.94% 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 -0.26% /zigman2/quotes/203416411/delayed HTHIF +2.28% losing 2.8% and Fuji Electric Co. /zigman2/quotes/205163888/delayed JP:6504 -0.89%  shedding 7.5%.

Shares of heavyweight Samsung Electronics Co. /zigman2/quotes/209800866/delayed KR:005930 -1.33% /zigman2/quotes/202367843/delayed SSNLF 0.00% 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 -1.23% /zigman2/quotes/205439169/delayed 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 -0.28% /zigman2/quotes/209628452/delayed MQBKY -0.64% 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 -1.40% /zigman2/quotes/201215503/delayed HKXCY -0.45%  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 -0.89% /zigman2/quotes/207472799/delayed SHCAF +3.24% 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 -0.15% /zigman2/quotes/204359850/composite TSM -1.58% , 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
¥ 15.58
-0.01 -0.06%
Volume: 99.51M
Feb. 21, 2020 3:00p
P/E Ratio
11.14
Dividend Yield
1.40%
Market Cap
¥302.54 billion
Rev. per Employee
¥6.12M
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,162.84
-32.66 -1.49%
Volume: 635,474
Feb. 21, 2020 3:33p
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/zigman2/quotes/210597971/delayed
add Add to watchlist JP:100000018
JP : Nikkei
23,386.74
-92.41 -0.39%
Volume: 0.00
Feb. 21, 2020 3:15p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,139.00
-23.50 -0.33%
Volume: 1.07M
Feb. 21, 2020 5:17p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
27,308.81
-300.35 -1.09%
Volume: 1.77M
Feb. 21, 2020 4:08p
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/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 313.05
-7.25 -2.26%
Volume: 32.43M
Feb. 21, 2020 4:00p
P/E Ratio
24.72
Dividend Yield
0.98%
Market Cap
$1401.47 billion
Rev. per Employee
$1.98M
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/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 2,095.97
-57.13 -2.65%
Volume: 4.65M
Feb. 21, 2020 4:00p
P/E Ratio
91.06
Dividend Yield
N/A
Market Cap
$1071.83 billion
Rev. per Employee
$359,671
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 2,095.97
-57.13 -2.65%
Volume: 4.65M
Feb. 21, 2020 4:00p
P/E Ratio
91.06
Dividend Yield
N/A
Market Cap
$1071.83 billion
Rev. per Employee
$359,671
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/zigman2/quotes/205091392/delayed
HK : Hong Kong
HK$ 6.69
-0.07 -1.04%
Volume: 22.74M
Feb. 21, 2020 4:08p
P/E Ratio
15.94
Dividend Yield
2.33%
Market Cap
HK$206.84 billion
Rev. per Employee
HK$1.29M
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/zigman2/quotes/205476740/composite
US : U.S.: NYSE
$ 8.57
-0.04 -0.46%
Volume: 269,670
Feb. 21, 2020 6:30p
P/E Ratio
16.01
Dividend Yield
2.09%
Market Cap
$26.35 billion
Rev. per Employee
$164,278
loading...
/zigman2/quotes/200479222/delayed
HK : Hong Kong
HK$ 27.40
-0.25 -0.90%
Volume: 7.37M
Feb. 21, 2020 4:08p
P/E Ratio
9.13
Dividend Yield
5.36%
Market Cap
HK$292.34 billion
Rev. per Employee
HK$7.03M
loading...
/zigman2/quotes/200048848/delayed
US : U.S.: OTC
$ 70.71
+0.60 +0.86%
Volume: 12,021
Feb. 21, 2020 3:45p
P/E Ratio
9.24
Dividend Yield
5.24%
Market Cap
$37.56 billion
Rev. per Employee
$898,763
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/zigman2/quotes/204682472/delayed
HK : Hong Kong
HK$ 3.19
-0.03 -0.93%
Volume: 260.67M
Feb. 21, 2020 4:08p
P/E Ratio
4.48
Dividend Yield
6.61%
Market Cap
HK$947.86 billion
Rev. per Employee
HK$3.13M
loading...
/zigman2/quotes/201568493/delayed
US : U.S.: OTC
$ 10.19
+0.01 +0.10%
Volume: 59,584
Feb. 21, 2020 3:46p
P/E Ratio
4.57
Dividend Yield
5.45%
Market Cap
$34.60 billion
Rev. per Employee
$399,878
loading...
/zigman2/quotes/209359942/delayed
CN : China: Shanghai
¥ 3.62
-0.01 -0.28%
Volume: 79.94M
Feb. 21, 2020 3:00p
P/E Ratio
5.72
Dividend Yield
5.08%
Market Cap
¥1068.56 billion
Rev. per Employee
¥2.61M
loading...
/zigman2/quotes/205365330/delayed
HK : Hong Kong
HK$ 2.97
+0.01 +0.34%
Volume: 2.04M
Feb. 21, 2020 4:08p
P/E Ratio
10.99
Dividend Yield
11.88%
Market Cap
HK$22.79 billion
Rev. per Employee
HK$3.38M
loading...
/zigman2/quotes/200590525/delayed
CN : China: Shanghai
¥ 2.79
-0.02 -0.71%
Volume: 19.38M
Feb. 21, 2020 3:00p
P/E Ratio
11.78
Dividend Yield
12.90%
Market Cap
¥21.64 billion
Rev. per Employee
¥2.85M
loading...
/zigman2/quotes/207639533/delayed
JP : Japan: Tokyo
¥ 2,776.00
-11.50 -0.41%
Volume: 2.99M
Feb. 21, 2020 3:00p
P/E Ratio
18.20
Dividend Yield
5.76%
Market Cap
¥2965.43 billion
Rev. per Employee
¥19.98M
loading...
/zigman2/quotes/210242912/composite
US : U.S.: NYSE
$ 24.67
-0.33 -1.32%
Volume: 229,684
Feb. 21, 2020 6:30p
P/E Ratio
17.91
Dividend Yield
5.09%
Market Cap
$26.60 billion
Rev. per Employee
$180,925
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/zigman2/quotes/202054799/delayed
JP : Japan: Tokyo
¥ 20,180.00
-290.00 -1.42%
Volume: 504,000
Feb. 21, 2020 3:00p
P/E Ratio
47.48
Dividend Yield
N/A
Market Cap
¥3928.21 billion
Rev. per Employee
¥95.87M
loading...
/zigman2/quotes/206262686/delayed
US : U.S.: OTC
$ 179.08
-5.42 -2.94%
Volume: 237.00
Feb. 21, 2020 2:24p
P/E Ratio
46.01
Dividend Yield
N/A
Market Cap
$35.41 billion
Rev. per Employee
$869,691
loading...
/zigman2/quotes/203839937/delayed
JP : Japan: Tokyo
¥ 4,178.00
-11.00 -0.26%
Volume: 3.42M
Feb. 21, 2020 3:00p
P/E Ratio
20.72
Dividend Yield
2.15%
Market Cap
¥4047.57 billion
Rev. per Employee
¥30.84M
loading...
/zigman2/quotes/203416411/delayed
US : U.S.: OTC
$ 38.87
+0.87 +2.28%
Volume: 0.00
Feb. 11, 2020 5:20p
P/E Ratio
21.20
Dividend Yield
N/A
Market Cap
$36.12 billion
Rev. per Employee
$279,568
loading...
/zigman2/quotes/205163888/delayed
JP : Japan: Tokyo
¥ 3,355.00
-30.00 -0.89%
Volume: 848,300
Feb. 21, 2020 3:00p
P/E Ratio
14.02
Dividend Yield
2.38%
Market Cap
¥483.53 billion
Rev. per Employee
¥33.86M
loading...
/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
59,200.00
-800.00 -1.33%
Volume: 13.78M
Feb. 21, 2020 3:30p
P/E Ratio
16.34
Dividend Yield
2.39%
Market Cap
₩407560.00 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202367843/delayed
US : U.S.: OTC
$ 44.20
0.00 0.00%
Volume: 500.00
Feb. 19, 2020 5:20p
P/E Ratio
14.05
Dividend Yield
N/A
Market Cap
$300.24 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206019389/delayed
KR : S. Korea: KRX
40,050.00
-500.00 -1.23%
Volume: 971,041
Feb. 21, 2020 3:30p
P/E Ratio
10.20
Dividend Yield
2.87%
Market Cap
₩16257.70 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205439169/delayed
US : U.S.: OTC
$ 30.30
+2.30 +8.21%
Volume: 100.00
Nov. 20, 2017 12:00a
P/E Ratio
8.89
Dividend Yield
N/A
Market Cap
$12.08 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206727308/delayed
AU : Australia: Sydney
$ 151.34
-0.43 -0.28%
Volume: 687,465
Feb. 21, 2020 4:10p
P/E Ratio
16.73
Dividend Yield
4.77%
Market Cap
$51.40 billion
Rev. per Employee
$1.02M
loading...
/zigman2/quotes/209628452/delayed
US : U.S.: OTC
$ 99.69
-0.64 -0.64%
Volume: 3,317
Feb. 21, 2020 3:48p
P/E Ratio
15.64
Dividend Yield
4.21%
Market Cap
$34.05 billion
Rev. per Employee
$777,639
loading...
/zigman2/quotes/200234512/delayed
HK : Hong Kong
HK$ 267.60
-3.80 -1.40%
Volume: 3.69M
Feb. 21, 2020 4:08p
P/E Ratio
36.36
Dividend Yield
2.54%
Market Cap
HK$341.45 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201215503/delayed
US : U.S.: OTC
$ 34.43
-0.16 -0.45%
Volume: 25,923
Feb. 21, 2020 3:45p
P/E Ratio
36.67
Dividend Yield
2.23%
Market Cap
$43.87 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206869087/delayed
JP : Japan: Tokyo
¥ 5,560.00
-50.00 -0.89%
Volume: 2.16M
Feb. 21, 2020 3:00p
P/E Ratio
23.18
Dividend Yield
1.35%
Market Cap
¥1112.87 billion
Rev. per Employee
¥64.26M
loading...
/zigman2/quotes/207472799/delayed
US : U.S.: OTC
$ 14.32
+0.45 +3.24%
Volume: 0.00
Feb. 7, 2020 5:19p
P/E Ratio
15.92
Dividend Yield
N/A
Market Cap
$8.13 billion
Rev. per Employee
$454,670
loading...
/zigman2/quotes/207385621/delayed
TW : Taiwan
NT$ 325.00
-0.50 -0.15%
Volume: 22.81M
Feb. 21, 2020 1:30p
P/E Ratio
24.41
Dividend Yield
2.92%
Market Cap
NT$8440.34 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204359850/composite
US : U.S.: NYSE
$ 55.59
-0.89 -1.58%
Volume: 6.82M
Feb. 21, 2020 6:30p
P/E Ratio
25.78
Dividend Yield
2.23%
Market Cap
$292.91 billion
Rev. per Employee
N/A
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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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