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Jan. 2, 2019, 11:33 p.m. EST

Asian markets mostly down as Apple’s warning weighs on tech stocks

Apple suppliers hit hard after tech giant cuts sales forecast

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By Associated Press and MarketWatch


Bloomberg News
Commercial buildings stand illuminated at dusk in Hong Kong.

Asian markets were mostly lower Thursday after tumbling more than 1% on the first trading day of 2019. Apple downgraded its sales projections, citing slowing Chinese growth, hitting technology shares in South Korea and Taiwan. The Japanese yen, seen as a relatively safe asset, strengthened against the dollar, euro and several other Asian and European currencies.

South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.83%   lost 0.2% and Taiwan’s benchmark   fell 0.6%. The Shanghai Composite index /zigman2/quotes/210598127/delayed CN:SHCOMP -0.59%   was flat, while Hong Kong’s Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -1.68%   was down 0.3%. Australia’s S&P-ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.71%   rebounded 1.4%. Shares fell in Singapore /zigman2/quotes/210597985/delayed SG:STI -0.06%   but rose in Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX -0.22%  . Japan’s markets were closed.

Apple CEO Tim Cook said in a letter to shareholders released after markets closed on Wednesday that he expects the tech giant’s revenue for the October-December quarter to fall below internal and analysts’ projections. Apple /zigman2/quotes/202934861/composite AAPL -3.17%   now expects revenue of $84 billion for the quarter, about 9 percent lower than the $91.3 billion estimate from analysts polled by FactSet. The official results will be released on Jan. 29. Cook attributed most of the revenue drop to China, where the economy has been slowing and where U.S. tariffs have been raised on more than $200 billion in goods, although the iPhone hasn’t been affected directly so far. The company’s shares fell 7.6% to $146 in after-hours trading.

Asian tech stocks were especially hard hit following Apple’s announcement. In Korea, Samsung /zigman2/quotes/209800866/delayed KR:005930 +0.17%   and SK Hynix /zigman2/quotes/206420319/delayed KR:000660 +0.96%  tumbled, while Apple suppliers such as AAC /zigman2/quotes/201441510/delayed HK:2018 -2.66%   and Sunny Optical /zigman2/quotes/206687505/delayed HK:2382 -0.33%   each fell more than 4% in Hong Kong, and in Taiwan, Hon Hai Precision Industry /zigman2/quotes/207256514/delayed TW:2317 -0.26%  and Taiwan Semiconductor /zigman2/quotes/207385621/delayed TW:2330 -0.90%   sank.

A turbulent day on Wall Street saw stocks plunging before recovering and finishing slightly higher. Surveys by the China’s government and a major business magazine that showed Chinese manufacturing had slowed in December weighed on sentiment. Still, the broad S&P 500 index /zigman2/quotes/210599714/realtime SPX -1.12%  added 0.1% to 2,510.03 on Wednesday. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.88%  , which lost 398 points in the first few minutes of trading, closed 0.1% higher at 23,346.24. The Nasdaq composite /zigman2/quotes/210598365/realtime COMP -1.07%   rose 0.5% to 6,665.94. The Dow future contract   was down 1.4% early Thursday and that for the S&P 500   lost 1.3%.

“A flight to safety following the series of aggravating releases since the turn of the year saw the rush into the yen this morning. Doubling down on Asia markets for a second day today would be the latest downward revision in Q1 guidance from tech giant, Apple,” Jingyi Pan of IG said in a market commentary. “The already shaky foundation for Apple owing to the likelihood of the company’s products being enlisted into the tariffs scuffle saw their latest move to lower revenue outlook packing a punch for share prices,” she added.

Oil prices, which have fallen about 40% since October, settled after jumping at the start of the year. Benchmark U.S. crude   shed 83 cents to $45.71 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped 2.5 percent to $46.54 per barrel on Wednesday. Brent crude  , used to price international oils, lost 43 cents to $54.48 per barrel. It added 2.1 percent to $54.91 per barrel in London.

The dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.2400%   weakened to 107.16 yen from 108.86 late Wednesday.

/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,392.30
-20.10 -0.83%
Volume: 1.01M
Sept. 21, 2020 3:19p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,318.55
-19.54 -0.59%
Volume: 18.74B
Sept. 21, 2020 2:24p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
24,045.29
-410.12 -1.68%
Volume: 1.03M
Sept. 21, 2020 2:24p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
5,822.60
-41.90 -0.71%
Volume: 620,690
Sept. 21, 2020 4:14p
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/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
2,496.18
-1.53 -0.06%
Volume: 0.00
Sept. 21, 2020 2:24p
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/zigman2/quotes/210597981/delayed
ID : Indonesia Stock Exchange
5,048.19
-11.04 -0.22%
Volume: 0.00
Sept. 21, 2020 11:30a
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/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 106.84
-3.50 -3.17%
Volume: 287.10M
Sept. 18, 2020 4:00p
P/E Ratio
32.48
Dividend Yield
0.77%
Market Cap
$1852.32 billion
Rev. per Employee
$1.98M
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/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
59,400.00
+100.00 +0.17%
Volume: 14.08M
Sept. 21, 2020 3:19p
P/E Ratio
18.58
Dividend Yield
2.38%
Market Cap
₩395893.08 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206420319/delayed
KR : S. Korea: KRX
84,500.00
+800.00 +0.96%
Volume: 3.94M
Sept. 21, 2020 3:19p
P/E Ratio
25.29
Dividend Yield
1.18%
Market Cap
₩57250.95 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201441510/delayed
HK : Hong Kong
HK$ 43.95
-1.20 -2.66%
Volume: 7.53M
Sept. 21, 2020 2:24p
P/E Ratio
26.95
Dividend Yield
0.23%
Market Cap
HK$54.56 billion
Rev. per Employee
HK$411,637
loading...
/zigman2/quotes/206687505/delayed
HK : Hong Kong
HK$ 122.50
-0.40 -0.33%
Volume: 2.99M
Sept. 21, 2020 2:24p
P/E Ratio
28.10
Dividend Yield
0.66%
Market Cap
HK$134.46 billion
Rev. per Employee
HK$1.08M
loading...
/zigman2/quotes/207256514/delayed
TW : Taiwan
NT$ 77.40
-0.20 -0.26%
Volume: 18.85M
Sept. 21, 2020 1:30p
P/E Ratio
10.47
Dividend Yield
5.43%
Market Cap
NT$1075.65 billion
Rev. per Employee
NT$8.60M
loading...
/zigman2/quotes/207385621/delayed
TW : Taiwan
NT$ 440.00
-4.00 -0.90%
Volume: 39.10M
Sept. 21, 2020 1:30p
P/E Ratio
25.08
Dividend Yield
2.27%
Market Cap
NT$11513.09 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,319.47
-37.54 -1.12%
Volume: 4.09B
Sept. 18, 2020 5:15p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,657.42
-244.56 -0.88%
Volume: 703.89M
Sept. 18, 2020 5:15p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
10,793.28
-116.99 -1.07%
Volume: 5.26M
Sept. 18, 2020 5:16p
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
104.3220
-0.2510 -0.2400%
Volume: 0.0000
Sept. 21, 2020 2:39a
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