Stocks decline as Apple reports risks over coronavirus impact
Wall Street broke from record highs and Asian shares declined after Apple Inc said it will not reach its revenue guidance for the March quarter due to a slower production and weaker demand amid the virus outbreak.
The news roused investors from optimistic outlook as it was revealed that China’s economic stimulus would do little to underpin the global economy against the epidemic.
S&P500 e-mini futures slipped 0.3% in early trade.
MSCI’s largest index of Asia-Pacific shares outside Japan slid 0.65%; Nikkei dropped 1.0%; and Shanghai shares fell 0.2% from its initial gain in the last 10 sessions.
The Chinese central bank cut interest rate on medium-term lending to reduce the benchmark loan prime rate.
Apple’s manufacturing facilities in China began re-opening but ramps up slower than expected, hinting of the outbreak’s heavier hit on businesses.
Asian tech shares Samsung Electronics was down 2.1%, Taiwan Semiconductor Manufacturing Co dropped 1.7%, and Sony lost 2.6%.
Japan’s Nomura Securities lowered its first quarter growth forecast to 3%, from 3.8% forecast previously.
Yen inched up 0.1%, at 109.75 against the USD; Australian dollar slid 0.4%, at $0.6707; Yuan steadied at 6.9866 per US dollar.
The euro lost 0.1%, at $1.0836, nearing its 33-month low amid a sluggish growth in the region.