Apple (LSE: 0R2V.L – news) suppliers were among the big losers in Asian trade on Wednesday after it announced its first fall in iPhone sales, while traders move tentatively ahead of a Federal Reserve announcement later in the day.
US tech giant Apple said on Tuesday that waning demand for its popular handset led to the firm’s first dip in revenue since 2003 and 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.
It (Other OTC: ITGL – news) also hit Asian firms that provide parts for the firm’s gadgets. In Tokyo, Japan Display (Other OTC: JNNDF – news) was almost one percent down, Alps Electric shed 1.8 percent and Taiyo Yuden (Other OTC: TYOYF – news) was off 1.5 percent.
“The sales drop forecasted 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 0.5 percent and LG Display lost 1.5 percent.
Most regional stock markets were in a holding pattern before the Fed concludes its meeting, with dealers hoping for some guidance on the bank’s plans for monetary policy, though no major decisions are expected.
Hong Kong was 0.1 percent higher, Shanghai edged up 0.2 percent and Seoul, Wellington and Singapore were each down 0.3 percent.
However, Sydney soared 0.9 percent after Australian inflation came in below expectations, ramping up pressure on the country’s central bank to cut interest rates further, which in turn sent the local dollar diving one percent.
Tokyo’s Nikkei ended the morning down 0.6 percent a day before Japan’s central bank completes its own policy meeting, which is forecast to see a boost to its stimulus package after this month’s deadly earthquakes that led to the closure of several factories in the south.
On oil markets, prices for both main contracts rallied more than one percent, building on Tuesday’s strong gains that came on the back of speculation Saudi Arabia is planning to cut back drilling and forecasts of a drop in US stockpiles.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: DOWN 0.6 percent at 17,253.01 (break)
Shanghai – Composite: UP 0.2 percent at 2,971.24
Hong Kong – Hang Seng: UP 0.1 percent at 21,420.40
Euro/dollar: UP at $ 1.1304 from $ 1.1298 Tuesday
Dollar/yen: UP at 111.81 yen from 111.31 yen
New York – Dow: UP 0.1 percent at 17,990.32 (close)
London – FTSE 100: UP 0.4 percent at 6,284.52 (close)
