Reuters Insider - Asia Insight: Stocks tumble after Apple warning

Catcher Technology Co

03/01/2019 10:39

Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=1_6ej464w0&referenceId=1_6ej464w0&pageId=ReutersNews
Source: Reuters Insider

Description: Asian stocks took a tumble after a shock warning from Apple about
weaker sales in China.
Apple suppliers took the brunt, with Taiwan's Foxconn,
Apple's biggest iPhone assembler, losing as much as 2 percent, before
recovering slightly.
Short Link: https://reut.rs/2LO9k7z

Video Transcript:

Hello and welcome to your Asia Insight. I'm Matt Gooderick. Asian stocks took
a tumble after a shock warning from Apple about weaker sales. Chief Executive
Tim Cook blamed slowing iPhone sales in China whose economy has been dragged
down by uncertainty around US-China trade relations. The warning sent Apple
shares tumbling in afterhours trade, hammered Asian supplies and triggered a
broader selloff in global markets. MSCI's broadest gauge of Asia-Pacific
shares outside Japan fell after an early attempted bounce. Shares in Hong Kong
and China seesawed between gains and losses as investors wait for Beijing to
roll out fresh support measures for the cooling economy. Tokyo's stock market
is closed until Friday but the Nikkei futures index fell by more than 2%.
Taiwan's Foxconn, Apple's biggest iPhone assembler lost as much as 2% before
recovering slightly while the integrated touch display provider General
Interface Solution fell by more than 3.5%. Catcher Technology which makes
iPhone casings, it is down by even more. Well, the news sparked a flash crash
on the currency markets as investors rush to less risky assets. The Japanese
Yen was the biggest beneficiary soaring against most major currencies in a
matter of seconds. The Australian Dollar often considered a gauge of global
risk appetite, fell to its lowest level since 2009 in early trade. Well, Apple
is just the highest profile multinational to warn the economic slowdown in
China. It could hurt its business. Carmakers such as Ford, Hyundai, and
Nissan, have all said they planned to cut production in the country. Well,
those growth concerns have been laid bare by the latest addition of China
Finance magazine which is published by the People's Bank of China. It says
growth could fall below 6.5% this year. The publication says the slowdown is
showing no signs of stopping and is in fact, gathering momentum. It points out
that business closures and layoffs are increasingly common and wages' growth
is severely restricted. Okay, let's take a look at some companies in the news
for you now then. The Chinese construction company Jangho Group has made a bid
to acquire the Australian medical central operator Healius for USD1.2 billion.
It could be one of the Mainland's biggest healthcare plays in the country. The
offer highlights the interest Chinese investors have in health-related
companies, seen as high quality assets with possible use back home where an
aging population is straining existing services. Qatar Airways has acquired a
5% stake in China Southern Airlines. The move is part of its strategy to gain
access to the fast-growing Mainland Chinese market. Qatar's flagship airline
has been looking for new routes and partners after it was blocked last year
from flying to the lucrative markets of Saudi Arabia and the United Arab
Emirates. The Chinese airlines says Qatar may increase its holding in the
future. Plaintiffs in South Korea have applied to seize assets belonging to
Japan's Nippon Steel. The case centers on South Korean workers who were forced
to work for the company during World War II. The latest suit demands that
Nippon, which has a joint venture with POSCO in the country should pay
compensation. Local court has already ruled it in the plaintiff's favor but
the Japanese government says all reparations were settled in a 1965 treaty
between the two countries. And finally, Taiwan's president has rejected
China's threats to the country's independence. Tsai Ing-wen's defiance follows
comments by Xi Jinping that it would take Taiwan by force if necessary. Well,
Taiwan is China's most sensitive issue and it's claimed by Beijing as its
sacred territory. Xi has stepped up pressure on the island since Tsai, who's
from the Pro-Independence Democratic Progressive Party became president in
2016.

The 1992 Consensus, as defined by the Beijing authorities, really means one
China and one country, two systems. Today's speech by China's leader has
confirmed our doubts. Here, I want to reiterate that Taiwan will never accept
one country, two systems. The majority of the Taiwanese public also resolutely
oppose one country, two systems. This is the Taiwan consensus