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Asian Equities Fall as Apple Cuts Quarterly Sales Forecast

Investing.com - Asian equities fell in morning trade on Thursday following news that Apple cut its quarterly sales forecast.

Apple Inc (NASDAQ:AAPL) lowered its forecast to $84 million in revenue for its fiscal first quarter ended Dec. 29, underperforming analysts’ expectations of $91.5 billion.

The company initially forecasted revenue of between $89 billion and $93 billion.

“The much larger issue is the slowing of the (Chinese) economy, and then the trade tension that has further pressured it,” Chief Executive Tim Cook said.

The news sent Apple shares tumbling in after-hours trade, while the companies’ Asia-listed suppliers also plunged on Thursday. Hon Hai Precision Industry Co Ltd (TW:2317) fell more than 2%, while Taiwan Semiconductor Manufacturing Company (TW:2330) slid 2.5%. LG Innotek Co Ltd (KS:011070) lost as much as 4.4% earlier in the day.

The Shanghai Composite was unchanged at 2,465.4, while the Shenzhen Component slipped 0.3% by 9:33 PM ET (02:33 GMT).

Australia’s ASX 200 outperformed its regional peers and gained 1.4%.

Elsewhere, South Korea’s KOSPI was down 0.4%. U.S. President Donald Trump said North Korean leader Kim Jong Un sent him a “great letter” and that they would like to meet again.

“We’ve really established a very good relationship,’’ said Trump.

On Wednesday, Kim warned that he would take a “new path” in nuclear talks if the U.S. didn’t relax economic sanctions.

“I am willing to sit with the U.S. president any time in the future and will strive to produce outcomes that would be welcomed by the international community,” said Kim.

“However, if the United States does not deliver its promise and misjudge our people’s patience, making unilateral demands to continue sanctions and put pressure on us, we will have no choice but to seek a new path to protect the country’s independence, interests and peace on the Korean Peninsula,” he added.

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