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Nikkei Markets

Asian stocks slump after Apple warns of revenue hit from China virus

Apple suppliers among the top losers on A300 index

HONG KONG (Nikkei Markets) -- Asian shares outside of Japan fell alongside U.S. equity index futures after Apple said the coronavirus outbreak in China will cause the company to miss its current quarter revenue guidance.

The Nikkei Asia300 index of companies outside Japan declined 1.45% to 1,362.28. Apple suppliers were among the top losers in the gauge. Samsung Electronics and SK Hynix declined at least 2.8% each. Taiwan Semiconductor Manufacturing, Apple's main mobile processor manufacturer, dropped 2.9%. Hon Hai Precision Industry, the biggest assembler of iPhones, slipped 0.6%, and lens supplier Largan Precision dropped 4.4%.

After U.S. markets closed yesterday, Apple said it will not be able to meet this quarter's revenue on account of supply and demand disruptions caused by the coronavirus outbreak. Manufacturing partner sites in China were ramping up slower than anticipated and all of its stores in China and many partner stores have been closed, the company added.

Safe havens U.S. bonds and the Japanese yen rose Tuesday, while crude oil prices declined.

In other movers on the A300, Cathay Pacific Airways shed 2.1% after it said January combined passengers carried by the full-service international airline and its regional unit Cathay Dragon dropped 3.8% on year to 3.01 million.

Dongfeng Motor Group slipped 2.3% after the Chinese carmaker said January sales volume fell 8.9% to 225,665 units.

Singapore Airlines dropped 1.7%. The airline and its regional wing SilkAir said Tuesday that they will reduce services temporarily across its network due to weak demand on account of the coronavirus outbreak. Late yesterday, the company said total number of passengers carried in January increased 9.3% on-year to 3.38 million.

Delta Electronics Thailand tumbled 9.5% after saying that net profit attributable for 2019 declined 42%.

Outside of the A300 gauge, Hong Kong and London-listed HSBC Holdings said Tuesday that its profit before tax last year fell 32.9% on-year amid recognition of goodwill impairment related to European businesses, where the lender plans to reduce footprint. Hong Kong shares of the lender dropped 2.8%.

--Nimesh Vora

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