Asian shares slid on Friday with a warning on smartphone demand from the world’s largest contract chipmaker dragged the tech sector. Meanwhile, higher oil prices fueled inflation fears and subdued sovereign bonds.
Spreadbetters indicated a solid start for European shares. The FTSE futures were 0.3 percent higher, while S&P 500 e-minis were a trifle weaker, which is also the case for the Dow futures.
In Asia, Apple led shares up while Taiwan Semiconductor Manufacturing revised down its revenue target to the lower end of forecasts. The semiconductor company blamed the weaker demand for smartphones.
“The big story for the APAC region today will be fallout from TSMC’s miss, which will weigh heavily on the tech sector, with first order impacts on the Semis and Samsung Electronics’ Galaxy supply chain,” said analysts at JP Morgan in a note. “The miss appears largely to have been due to Apple iPhones, and so may also weight on the Apple supply chain,” they added.
Taiwan’s main index dropped 1.8 percent. Tech stocks shrank 3.5 percent, while TSMC was off over 6 percent.
Meanwhile, stocks in South Korea slumped 0.5 percent. MSCI’s broaded index of Asia-Pacific shares excluding Tokyo lost 1.1 percent, pushed by a 1.6 percent drop in technology. Japan’s Nikkei eased 0.1 percent with the tech slumps offset the gains in the energy and financial sectors.
In China, stocks were also down, with losses in the Software & Computer Services, Telecoms, and Mobile sectors leading the shares lower. At the close, Shanghai Composite slid 1.47 percent, while the SZSE Component index lost 1.79 percent.
On the Shanghai Composite, the best performer was Shanghai Zhongyida Co Ltd A, reaching 10.09 percent or 0.43 points, trading at 4.69 at the close. L&K Engineering Suzhou Co Ltd gained 10.00 percent or 2.41 points, ending at 26.50. Qingdao Topscomm Communication Inc gained 10.00 percent or 2.330 points to 25.640 in late trade.
On the SZSE Component, the top performer was Nationz Technologies Inc, rising 9.99 percent to11.45. Swan Fiber Co Ltd jumped 9.98 percent, settling at 11.13, while the Tongfang Guoxin Electronics Co Ltd rose 6.93 percent closing at 58.15. Wall Street has also been affected by the weak results from Philip Morris, a tobacco company that witnessed its shares down 17.7 percent. It dragged on the S&P 500. The Dow finished lower 0.34 percent. The S&P 500 decreased 0.57 percent, while the Nasdaq lost 0.78 percent.
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