Asia markets stage slight recovery but tech firms soured by Apple | Daily News

Asia markets stage slight recovery but tech firms soured by Apple

Most Asian markets rose Thursday (Jan 3) after the previous day’s sharp losses but technology firms fell after Apple slashed its revenue forecasts blaming slowing China sales.

The yen pared early sharp gains from a flash crash, which saw the dollar briefly plunge to its lowest level since March after the Apple announcement, while the Australian dollar hit a 10-year low against the greenback.

Investors trod cautiously as bargain-buyers capitalised on Wednesday’s hammering across Asia, while sentiment remains weak owing to uncertainty over a number of issues including China-US trade, China’s economic woes, the US government shutdown and Brexit.

Wall Street and European markets mostly recovered from early losses to end slightly higher but Apple’s announcement that it expected to earn less than expected in the key December quarter send shudders through markets.

The firm, which was already under pressure over signs that sales of its new iPhone were coming up short, blamed sluggish demand in China for the cut and citing the US trade war as a factor.

“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” chief executive Tim Cook told investors.

He told CNBC the tariffs row had “put additional pressure” on an already slowing Chinese economy, resulting in lower store and online traffic. The firm’s shares - already down about a third from their record high in March - dived seven per cent in after-hours trading.

Asian tech firms took a hit from the news, with Hong Kong-listed Sunny Optical and AAC Technologies both down more than two per cent, while Apple supplier TSMC shed almost one per cent.

But on broader markets Hong Kong gained 0.4 per cent after tanking almost three per cent Wednesday, while Shanghai added 0.7 per cent following a more than one per cent drop after more weak Chinese economic data. Channel NewsAsia


 

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