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Asia stocks slide, Apple suppliers track losses

GMT 08:25 2016 Friday ,13 May

Arab Today, arab today Asia stocks slide, Apple suppliers track losses

Nissan stocks in Tokyo soared almost 5%
Hong Kong - Arab Today

Asia stocks ended a choppy week with more losses Friday following a negative lead from New York and Europe, with Apple suppliers taking a hit after the tech giant's shares tumbled in US trade. 

Oil prices also retreated after hitting new six-month highs on a prediction from the International Energy Agency that a global supply glut would ease in the second half of 2016.

Tokyo finished 1.4 percent lower after a disappointing earnings season and as the yen edged higher despite the Bank of Japan's chief repeated a pledge that he was ready to unleash more stimulus measures to boost the sagging economy.

The greenback was trading at 108.83 yen in the afternoon, against 109.00 yen on Thursday in New York.

But Nissan soared four percent a day after saying it will buy a one-third stake in scandal-hit Mitsubishi for $2.2 billion. Mitsubishi was down almost two percent after soaring more than 16 percent Thursday on the buyout talk.
Apple suppliers were dragged lower after the US firm suffered a 2.4 percent loss in New York, which extended a sell-off that began on April 26 when it reported its first ever drop in iPhone sales.

In Tokyo Japan Display sank 6.1 percent and Alps Electric lost 3.2 percent, while Seoul-listed LG Display sank 3.2 percent.

“We’re losing sight of Apple’s growth story," Juichi Wako, a senior strategist at Nomura Holdings in Tokyo told Bloomberg News.

"We should keep a close eye on some electronic shares related to Apple” in Tokyo trading.

- Apple China move -
Apple announced Friday that it had invested $1 billion in Chinese ride hailing app Didi Chuxing, a bitter rival of US firm Uber.

The tie-up fits the California firm's desire to shore up sales in the Asian giant, and its rumoured plans to enter the auto sector.

In other markets, Hong Kong fell 1.4 percent, Sydney lost 0.5 percent and Taiwan slipped 0.6 percent.

Shanghai flitted in and out of positive territory before ending down 0.3 percent with investors cautious ahead of the Saturday release of retail sales and industrial production data.

Concerns about the world's second largest economy returned last week after a disappointing trade report, while a government warning over debt levels has sparked fears Beijing will hold off introducing any fresh stimulus for the time being.

Seoul lost 0.5 percent as South Korea's central bank on Friday kept its record-low interest rate unchanged for an 11th straight month, despite a slowdown in economic growth.

Oil prices fell after rallying to new peaks in US trade on the back of IEA predictions that the global supply glut would ease this year. In afternoon trade West Texas Intermediate was 1.2 percent off and Brent slipped 0.8 percent.

In its monthly report, the agency predicted "solid" growth in oil demand during 2016, after stronger-than-expected demand in the first quarter, mainly driven by India.

And though it kept its 2016 demand forecast unchanged, the Paris-based agency said it was more likely to be revised higher than lower.

In early European trade London fell 0.6 percent, while Frankfurt and Paris each shed 0.7 percent.

- Key figures around 0745 GMT -

Tokyo: Nikkei 225: DOWN 1.4 percent at 16,412.21 (close)

Shanghai - Composite: DOWN 0.3 percent at 2,827.11 (close)

Hong Kong - Hang Seng: DOWN 1.4 percent at 19,633.77

Euro/dollar: DOWN at $1.1375 from $1.1426 Thursday

Dollar/yen: DOWN at 108.83 yen yen from 109.00 yen

London - FTSE 100: DOWN 0.6 percent at 6,069.68

New York - Dow: UP 0.1 percent at 17,720.50 (close)

Source: AFP

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