Asian equities retraced a part of Monday’s advance after Apple warned that it won’t meet its revenue guidance this quarter due to a subdued
production and lower demand in China and a disrupted global supply amid the coronavirus breakout. Even though Apple’s manufacturing
partner facilities resumed activity last week, China hasn’t managed to get back to a normal rhythm just yet, and the latter could take a
couple of more weeks, if not months.
The risk appetite remains fragile and gains in equity markets remain vulnerable to coronavirus related news.
Most Asian equities traded south on Tuesday. Shanghai’s Composite (+0.05%) recovered early losses as Hang Seng (-1.36%) gave back Monday gains on fear that even an efficient combination of fiscal and monetary stimuli in China and elsewhere may not suffice to reverse the damages from the coronavirus shock on economy.
US equity futures edged lower hinting at negative start as trading resumes after bank holiday.
By Ipek Ozkardeskaya