January 4, 2019: There was no respite for Asian investors Friday as most regional markets suffered more losses, with Tokyo tanking three percent and technology firms taking another hiding after Apple's shock revenue warning.
The New Year has proved so far to be anything but happy on trading floors as dealers face a confluence of issues including the China-US trade war, China's stuttering economy, the US government shutdown and Brexit.
Apple has been the source of angst this week after it slashed its revenue forecasts blaming weak Chinese demand for its iPhones and citing the tariffs spat between Washington and Beijing.
The US tech titan plunged 10 percent Wednesday — wiping $75 billion off its value — in response to the announcement and analysts said the fact such a usually safe firm was feeling the pinch was a sign of deeper problems in the global economy.
Technology firms, particularly those linked to Apple, were among the worst hit in Asia Friday. In Tokyo, which was returning from a four-day break, supplier Kyocera fell 3.3 percent, Japan Display was 1.4 percent off and Sharp dived 4.2 percent, while Alps Alpine shed 5.8 percent.
Sony was also more than four percent lower. There were also hefty losses for AAC technologies in Hong Kong and Foxconn in Taipei, which had already been badly hit Thursday.
“Belief in global corporate earnings is fading against the backdrop of the US-China trade friction,” Nobuhiko Kuramochi, head of investment information at Mizuho Securities in Tokyo, told Bloomberg News.
“Deteriorating Apple earnings will lead to volume cuts for suppliers, while it could also mean cost-cutting pressures.”
Tokyo's Nikkei 225 index ended the morning down 3.0 percent.
Shanghai shed 0.2 percent and Sydney was one percent lower while Seoul dropped 0.1 percent and Taipei sank 1.3 percent. There were also losses in Wellington and Jakarta. However, Hong Kong added 0.1 percent and Singapore edged up 0.3 percent.
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