Asian markets fell on Tuesday following the news of Hong Kong and Japan’s Apple stocks were declining sharply after the tech giant issued a revenue warning.
The Hang Seng Index and South Korea’s KOSPI dropped by 1.3% by 10:45 PM ET (02:45 GMT), while Japan’s Nikkei lost 1.6%.
In China, the Shanghai Composite and the SZE Component lowered by 0.4% and 0.2% respectively.
Apple Inc suppliers in Asia underperformed in morning trade with Japan’s Taiyo Yuden plummeting more than 5%. Meanwhile Alps Alpine and Murata Manufacturing dropped by more than 3%.
In Hong Kong, Sunny Optical plunged 3.4% and Aac Tech fell by 2.9%.
South Korea’s SK Hynix and Samsung Electronics dipped by 1.0% and 1.5% respectively.
“This unexpected news confirms the worst fears of the Street that the virus outbreak has dramatically impacted iPhone supply from China/Foxconn with a demand ripple impact worldwide,” Wedbush Securities analysts Daniel Ives and Strecker Backe wrote in a note cited by CNBC. They added that the magnitude of the impact was “clearly worse than feared.”
“While this news is a tough pill to swallow for the bulls, Apple remains a company significantly exposed to this virus issue given the company’s massive supply and demand tentacles throughout China,” they said.