Share

Asia markets down ahead of Fed

Hong Kong - Apple's suppliers were among the big losers in Asian markets Wednesday after it announced the first fall in iPhone sales, while overall trading was tentative before a Federal Reserve announcement later in the day.

US tech giant Apple said Tuesday that waning demand for its popular handset led to the first dip in revenue since 2003, and the trend was likely to continue this year as a growth slowdown in China drags on that crucial market.

The news pummelled Apple's shares in after-hours US trading, with the firm plummeting more than eight percent.

Apple's results were "pretty disappointing", said Angus Nicholson, a Melbourne-based market analyst at IG.

It also hit Asian companies that provide parts for Apple gadgets. In Tokyo Japan Display was 0.5% down, Alps Electric shed more than one percent and Taiyo Yuden slid 0.8%.

"The sales drop forecast by Apple for the April-June period is greater than expected," Nobuyuki Fujimoto, a senior market analyst at SBI Securities, told Bloomberg News.

"The shares of Japanese electronic-component makers are down by association."

Taipei-listed Hon Hai Precision - parent of assembler Foxconn, which builds the iPhone and iPad - shed 0.9% and South Korea's LG Display lost almost 4%.

Regional stock markets were in the red before the Fed ends its two-day meeting on Wednesday, with dealers hoping for some guidance on its plans for monetary policy even though no major decisions are expected.

Hong Kong ended 0.2% down and Seoul gave up 0.2%.

Shanghai ended 0.4% lower, with early gains wiped out by a reading on Chinese industrial firms' profits for March that lowered the chances authorities will add to their stimulus programme.

Wellington, Singapore and Taipei were also well down.

In early European trade London dipped 0.2% while Frankfurt was flat. Paris sank 0.3%.

Sydney shed 0.6%, reversing a morning rally.

Tokyo's Nikkei ended down 0.4% a day before Japan's central bank completes its own policy meeting, which is forecast to see a boost to its stimulus package after deadly earthquakes that led to the closure of several factories in the south.

"Speculation is pretty high that we're going to see some sort of announcement of further easing from the BoJ," Angus Nicholson, a market analyst at IG in Melbourne, told Bloomberg News.

On oil markets prices for both main contracts rallied more than 1.5%, building on Tuesday's strong gains that came on the back of speculation Saudi Arabia plans to cut back drilling and forecasts of a drop in US stockpiles.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.3%
Rand - Pound
23.82
+0.4%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders