HONG KONG: Technology firms led a sell-off across Asian markets yesterday on fresh concerns about demand for Apple’s iPhones, while Japanese car giants Nissan and Mitsubishi plunged on news chairman Carlos Ghosn had been arrested over alleged financial misconduct. After a brief couple of days of stability, panic returned to trading floors following a report that the US titan had slashed production of its popular handset.
That comes just a week after a supplier suggested the firm had cut orders, fanning speculation the latest incarnation of the gadget is not selling as much as hoped. Apple collapsed four per cent in US trade with Facebook, Amazon, Google parent Alphabet and Microsoft each diving three per cent or more.
The losses filtered through to Asia, where Apple suppliers were also in trouble. In Tokyo, Japan Display collapsed more than 10 per cent and has now lost around a third of its value over the past week, while Alps Electric fell 1.8 per cent. Among other tech firms Sony shed 3.1 per cent and in Hong Kong market heavyweight Tencent shed 3,3 per cent while Sunny Optical Technology lost 2.4 per cent.
Taiwan Semiconductor Manufacturing Company shed 1.8 per cent in Taipei and Delta Electronics was off 1.6 per cent. Broader markets were also well down as investors fret over a number of issues, with attention now turning to next week’s G20 summit in Argentina, where Donald Trump is expected to meet Chinese President Xi Jinping to talk trade. There had been some hope that the world’s top two economies could find a resolution to their painful tariffs row but a clash of words at the weekend between Xi and Trump’s Vice President Mike Pence has muddied the waters. “A comprehensive trade agreement at the G20 that rolls back the tariffs still looks unlikely,” warned Bank of Singapore currency strategist Sim Moh Siong. -AFP
