Wednesday 3rd January 2024: Asian Markets Stumble as Apple Downgrade Sparks Tech Sell-Off – IC Markets


Global Markets:

  •  Asian Stock Markets : Nikkei down 0.23%, Shanghai Composite up 0.18%, Hang Seng down 0.91% ASX down 1.37%
  • Commodities : Gold at $2070.5 (-0.17%), Silver at $23.83 (-0.54%), Brent Oil at $75.42 (0.03%), WTI Oil at $70.37 (0.07%)
  • Rates : US 10-year yield at 3.958, UK 10-year yield at 3.660, Germany 10-year yield at 2.074

News & Data:

  • (USD) Final Manufacturing PMI 47.9 vs 48.4 expected
  • (GBP) Final Manufacturing PMI 46.2 vs 46.4 expected

Markets Update:

Stock markets across the Asia-Pacific region saw a downturn as major tech companies, particularly chipmakers, faced pressure following Barclays’ downgrade of Apple. The iPhone maker’s shares dropped 4% after Barclays revised its rating to ‘underweight’ and slashed the price target to $160 from $161. This impacted Apple suppliers in key Asian markets, dragging down indexes in South Korea and Taiwan. South Korea’s Kospi closed 2.34% lower, with tech and chip stocks like Samsung Electronics and SK Hynix falling about 3% each. Taiwan’s market shed 1.65%, with Taiwan Semiconductor Manufacturing Company down 2.53% and Foxconn dropping 0.48%.

India’s factory activity for December fell below expectations, recording an 18-month low in the Purchasing Managers Index (PMI) at 54.9, below the anticipated 55.9. Australia’s S&P/ASX 200 retreated 1.37% after reaching an all-time high the previous day. Hong Kong’s Hang Seng index fell 0.97%, and China’s CSI 300 slipped 0.26%.

Japan’s markets remained closed due to a tragic incident at Tokyo’s Haneda airport, where a collision between a Japan Airlines flight and a coast guard aircraft resulted in five deaths. The Coast Guard aircraft was en route for earthquake relief in Niigata prefecture following the New Year’s Day earthquake in Japan.

In the US, the Nasdaq Composite dropped 1.63%, the S&P 500 slid 0.57%, and Apple shares fell over 3% after Barclays’ ‘underweight’ downgrade. However, the Dow Jones Industrial Average remained steady due to gains in defensive stocks like Johnson & Johnson and Merck.

Upcoming Events: 

  • 3:00 PM GMT – USD ISM Manufacturing PMI
  • 3:00 PM GMT – USD JOLTS Job Openings
  • 3:00 PM GMT – USD ISM Manufacturing Prices
  • 7:00 PM GMT – USD FOMC Meeting Minutes

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