By Sarah Turner and V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) — Most Asian markets ended lower Thursday amid some gloom over earnings reports from Apple Inc. and Hyundai Motor Co., although Japanese shares found fresh impetus from a weaker yen.
South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -1.49% and China’s Shanghai Composite Index /zigman2/quotes/206600939/delayed CN:000001 -0.32% lost 0.8% each, Taiwan’s Taiex declined 0.6% and Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -1.03% slipped 0.2%.
On the upside, Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.39% rose 1.3%, while Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.33% gained 0.5%, completing a seven-day winning streak to end at its highest level since May 2011.
Most Asia markets are trading around multi-year highs and, according to Perpetual Investments investment strategy chief Matthew Sherwood, were “probably due for a bout of profit-taking before too long.”
Can China spawn the next electronics giant?
China is pushing to consolidate its electronics industry in a bid to create the next tech giant.
“The rise in global stock prices is getting thinner and showing signs of fatigue and being over-bought,” he said.
Some investors took their cues from a sharp fall in shares of investor favorite Apple /zigman2/quotes/202934861/composite AAPL -1.03% in U.S. after-hours trade Wednesday. The firm posted almost flat fiscal first-quarter earnings, weaker-than-expected revenue and a disappointing forecast. Read: Apple shares tumble on results, forecast.
“With Apple’s worse-than-expected results, it would not be surprising if we see some consolidation in risk appetite today,” said Crédit Agricole strategist Gary Yau.
Some Asia-based companies in Apple’s supply chain felt the heat from the results.
In Taipei, Hon Hai Precision Industry Co. /zigman2/quotes/207256514/delayed TW:2317 -1.33% /zigman2/quotes/205520950/delayed HNHPF -2.46% , which assembles iPhones, fell 2.9%; South Korean Apple supplier LG Display Co. /zigman2/quotes/204226570/delayed KR:034220 -1.95% /zigman2/quotes/204466928/composite LPL -4.67% dropped 1.2% in Seoul, while Apple handset rival Samsung Electronics Co. /zigman2/quotes/209800866/delayed KR:005930 -1.33% /zigman2/quotes/202367843/delayed SSNLF 0.00% , which has also supplies some components for Apple products, lost 1.4%.
China data strong
Meanwhile, a preliminary survey from HSBC out Thursday showed that business conditions for Chinese manufacturers improved to a 24-month high this month.
The results represented the fifth straight month of improvement for the data series, “heralding a good start to the new year,” said chief China economist Hongbin Qu. “Despite the still-tepid external demand, the domestic-driven restocking process is likely to add steam to China’s ongoing recovery in the coming months,” he added. Read: China manufacturing improves: HSBC initial data.
Global Dow
• MarketWatch Topics: Middle East
• Asia Markets | Europe Markets | Lat. Am.
• Canadian Markets | Israel Stocks | London
• U.S.: Market Snapshot | After Hours
Tools
• Latin American and Canadian indexes
• European indexes | Asian indexes
More on the Markets
• Global Economic Calendar
• Bond Report | Oil News | Earnings Watch
• Currencies | U.S. Economic Calendar
Australian mining firms — many of which count China as their most important customer — came off early lows or turned positive after the data, with BHP Billiton Ltd. /zigman2/quotes/201448516/delayed AU:BHP -0.78% /zigman2/quotes/208108397/composite BHP -1.54% advancing 0.3%.
Gold miner Newcrest Mining Ltd. /zigman2/quotes/203840223/delayed AU:NCM +1.45% /zigman2/quotes/206026738/delayed NCMGF +0.32% improved by 1.8%, swinging from a 1.7% loss earlier in the session after announcing a drop in second-quarter gold output. Read: Newcrest tips gold output at low end of forecast.
Linc Energy Ltd. surged 23.6% in Sydney afternoon trading after it released two estimates of un-risked prospective resource reserves in the Arckaringa Basin in South Australia, which the firm said “confirm the significant potential of shale oil.”
Add to watchlist
KR:SEU
Add to watchlist
CN:000001
Add to watchlist
HK:HSI
Add to watchlist
AAPL
Add to watchlist
TW:2317
Add to watchlist
HNHPF
Add to watchlist
KR:034220
Add to watchlist
LPL
Add to watchlist
KR:005930
Add to watchlist
SSNLF
Add to watchlist
AU:BHP
Add to watchlist
BHP
Add to watchlist
AU:NCM
Add to watchlist
NCMGF
