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Asian Stocks Slide Following Tech-led Slump on Wall Street

Asian stocks slid in morning trade on Tuesday - Asian stocks slid in morning trade on Tuesday following a tech-led slump on Wall Street as Apple (NASDAQ:AAPL) tanked by 5%.

Lumentum Holdings Inc (NASDAQ:LITE), one of iPhone’s face-recognition suppliers, cut its outlook for fiscal second quarter 2019 as one of its largest customers asked the company to “materially reduce shipments” for its products.

“We recently received a request from one of our largest Industrial and Consumer customers for laser diodes for 3D sensing to materially reduce shipments to them during our fiscal second quarter for previously placed orders that were originally scheduled for delivery during the quarter,” said Lumentum President and CEO Alan Lowe in a statement.

The report built speculation around the success of Apple's latest iPhones as the holiday season approaches. Although Lumentum did not mention Apple by name in the statement, the company listed the technology giant as its largest customer in the annual filing for the fiscal year 2018.

Overnight, the Dow fell by more than 600 points, while the NASDAQ Composite slumped 2.8%.

In Asia, China’s Shanghai Composite inched up 0.1%, while the Shenzhen Component was down 0.7%.

Hong Kong’s Hang Seng Index was down 0.2%.

Citing sources, the Wall Street Journal reported on Monday that U.S. Treasury Secretary Steven Mnuchin had resumed talks with China Vice Premier Liu He.

He and Mnuchin spoke by telephone last week, the WSJ said, adding that the discussion did not lead to any breakthrough regarding trade dispute between the U.S. and China.

Japan’s Nikkei 225 declined 2.3%, while South Korea’s KOSPI traded 0.9% lower as index heavyweight Samsung Electronics (KS:005930) and SK Hynix Inc (KS:000660) dropped 2.9% and 5.5% respectively.

Down under, Australia’s ASX 200 fell 1.7%.

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