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Jan. 22, 2018, 6:36 a.m. EST

Asian markets steady as U.S. shutdown rages on; Apple suppliers take a hit

Samsung, a few others down on fears of low iPhoneX demand

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By Kenan Machado


Reuters
Samsung shares fell on worries that Apple would cut forecast iPhone X orders.

Asian stock markets closed mostly higher on Monday, largely shrugging off concerns over the partial shutdown of the U.S. federal government.

However, Samsung Electronics /zigman2/quotes/209800866/delayed KR:005930 0.00% fell as fresh caution grew about demand for rival Apple’s most expensive iPhone.

Investors were generally looking past the U.S. budget impasse, with the situation largely seen as “political brinkmanship with little economic impact,” said Michael McCarthy, chief market strategist at CMC Markets.

The Wall Street Journal Dollar Index /zigman2/quotes/210673925/realtime XX:BUXX -0.16%  was down 0.2%, while S&P 500 futures  eased 0.1% and 10-year Treasury /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y -1.12%  ticked down to 2.65% from 2.66% earlier.

Samsung ended 2.2%, as South Korea’s Kospi index /zigman2/quotes/210598069/delayed KR:180721 +0.86%  fell 0.7%. Before Monday, the benchmark had traded up in five of the past six days.

While the South Korean company has its own line of smartphones, it is also a global manufacturer of components. Samsung’s next-generation displays feature organic light-emitting diodes, or OLED. Apple /zigman2/quotes/202934861/composite AAPL +2.39%  uses Samsung’s technology for the iPhone X.

S.K. Kim, who tracks Samsung for Daiwa Securities, said there were some concerns Apple could stop using OLED screens because of quality issues.

They come as iPhone X sales continue to be a source of concern. After channel checks with Apple vendors by Taiwan-based Daiwa analyst Kylie Huang, the brokerage firm now expects first-quarter orders to be 20% to 30% below its previous forecasts.

Apple audio supplier AAC Technologies /zigman2/quotes/201441510/delayed HK:2018 +0.49%  rose 1% in Hong Kong, but Japan’s Alps Electric /zigman2/quotes/206929613/delayed JP:6770 -3.35%  , which makes sensors, dropped 1.%. Smartphone-lens company Largan Precision /zigman2/quotes/210444196/delayed TW:3008 -0.59% ended flat and Apple product assembler Hon Hai /zigman2/quotes/207256514/delayed TW:2317 +0.13%  dropped 0.3% in Taiwan.

That market, home to a number of companies in Apple’s supply chain, hit a 28-year high as the Taiex  rose 0.7%, led by a 2.4% jump in Taiwan Semiconductor /zigman2/quotes/207385621/delayed TW:2330 -0.12% , its biggest component. The stock rallied 7.8% last week after strong fourth-quarter results.

Shares in Shenzhen rebounded strongly after a period in which Chinese investors focused on large-capitalization names, many of which are listed in Shanghai.

Bargain-hunting was occurring in Shenzhen, said First Shanghai Securities equities strategist Linus Yip, especially after a report last week showed the city’s economic output surpassed 2 trillion yuan ($313 billion) in 2017.

Shenzhen’s startup-heavy ChiNext price index hit a six-month low in morning trading and ended 2.3% higher.

The Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.21%  rose 0.4%, erasing an earlier loss. Chinese regulators fined Shanghai Pudong Development Bank /zigman2/quotes/204296742/delayed CN:600000 -0.32%  462 million yuan for falsifying loan applications and covering up bad-debt levels, sending the company’s shares down 3.6%. The penalty was actually good news for foreign investors as it indicates a move toward transparency, said a Singapore-based analyst with a foreign bank.

In Australia, the benchmark S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.0034%  fell for a fifth straight session, down 0.2% to levels last seen in early December. The country’s big banks again fell.

/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
58,200.00
0.00 0.00%
Volume: 15.50M
Sept. 29, 2020 3:30p
P/E Ratio
18.21
Dividend Yield
2.43%
Market Cap
₩387370.81 billion
Rev. per Employee
N/A
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/zigman2/quotes/210673925/realtime
XX : WSJ Index
89.11
-0.14 -0.16%
Volume: 0.00
Sept. 29, 2020 5:59a
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/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
0.65
-0.0074 -1.12%
Volume: 0.00
Sept. 29, 2020 5:59a
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,327.89
+19.81 +0.86%
Volume: 646,218
Sept. 29, 2020 3:32p
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/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 114.96
+2.68 +2.39%
Volume: 137.67M
Sept. 28, 2020 4:00p
P/E Ratio
34.95
Dividend Yield
0.71%
Market Cap
$1946.64 billion
Rev. per Employee
$1.98M
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/zigman2/quotes/201441510/delayed
HK : Hong Kong
HK$ 41.25
+0.20 +0.49%
Volume: 5.15M
Sept. 29, 2020 4:08p
P/E Ratio
25.29
Dividend Yield
0.24%
Market Cap
HK$50.21 billion
Rev. per Employee
HK$411,637
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/zigman2/quotes/206929613/delayed
JP : Japan: Tokyo
¥ 1,441.00
-50.00 -3.35%
Volume: 3.62M
Sept. 29, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
1.39%
Market Cap
¥304.65 billion
Rev. per Employee
¥20.30M
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/zigman2/quotes/210444196/delayed
TW : Taiwan
NT$ 3,345.00
-20.00 -0.59%
Volume: 361,998
Sept. 29, 2020 1:30p
P/E Ratio
15.94
Dividend Yield
2.36%
Market Cap
NT$450.04 billion
Rev. per Employee
N/A
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/zigman2/quotes/207256514/delayed
TW : Taiwan
NT$ 77.00
+0.10 +0.13%
Volume: 31.66M
Sept. 29, 2020 1:30p
P/E Ratio
10.42
Dividend Yield
5.45%
Market Cap
NT$1029.91 billion
Rev. per Employee
NT$8.60M
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/zigman2/quotes/207385621/delayed
TW : Taiwan
NT$ 431.00
-0.50 -0.12%
Volume: 32.23M
Sept. 29, 2020 1:30p
P/E Ratio
24.57
Dividend Yield
2.32%
Market Cap
NT$10994.48 billion
Rev. per Employee
N/A
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,224.36
+6.82 +0.21%
Volume: 15.13B
Sept. 29, 2020 3:01p
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/zigman2/quotes/204296742/delayed
CN : China: Shanghai
¥ 9.43
-0.03 -0.32%
Volume: 32.99M
Sept. 29, 2020 3:00p
P/E Ratio
5.53
Dividend Yield
6.36%
Market Cap
¥277.96 billion
Rev. per Employee
¥5.94M
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
5,952.10
-0.20 -0.0034%
Volume: 625,981
Sept. 29, 2020 5:24p
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