Asia markets fall again as Tokyo gets 2019 off to nightmare start

HONGKONG:Therewasnorespite for Asian investors yesterday as most regional markets suffered more losses, with Tokyo tanking three per cent 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 per cent Wednesday – wiping US$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 per cent, Japan Display was 1.4 per cent off and Sharp dived 4.2 per cent, while Alps Alpine shed 5.8 per cent. Sony was also more than four per cent 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.