Asian stocks mixed after Wall Street rises to record

Andrew Cummings
February 20, 2020

At around 2:35 a.m. ET, Dow futures were 22 points higher and pointed to an implied positive open of more than 23 points, while futures on the S&P 500 and Nasdaq were fractionally higher.

(MENAFN - Stocks fell on Tuesday as a forecast warning from tech giant Apple stoked worries over the coronavirus and its impact on corporate profits and the global economy.

Apple cautioned it doesn't count on to satisfy its quarterly income forecast, citing slowed manufacturing and weakened demand in China on account of the coronavirus outbreak.

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

Gold climbed more than 1% to a two-week high as investors sought safety in the wake of Apple's warning and the price of Brent, the global crude benchmark, fell below $57 a barrel.

HSBC Holdings PLC's announcement that it would shed $100 billion in assets, shrink its investment bank and revamp its USA and European businesses in a drastic overhaul added to concerns about the impact of the coronavirus.

"In general, investors are not overly concerned by the news from Apple as a read through to technology or the market overall".

Futures tied to the Dow Jones Industrial Average dropped 0.5%, while contracts linked to the tech-heavy Nasdaq Composite fell 0.5%, signaling a lower open when USA markets reopen after the Presidents Day holiday. "It's having a global impact on supply chains and shipments - this will have a negative impact on growth expectations".

But indexes ended off the day's lows and the Nasdaq ended a touch higher as Apple Inc (AAPL.O) trimmed its losses in late-session trading.

Overnight in Asia, China's CSI300 blue-chip stocks index lost 0.5% after gaining sharply on Monday, encouraged by a central bank rate cut and government stimulus hopes. Australia's S&P/ASX 200 added 0.3% to 7,162.50. and the Shanghai Composite index picked up 1.8% to 3,030.15. The Japanese yen strengthened 0.01% versus the greenback at 109.88 per dollar. "We expect almost all the manufacturing and a lot of the demand is more likely to be recaptured as soon as Apple's manufacturing companions are in a position to return to full manufacturing, and as soon as retail services in China return to regular". The benchmark 10-year note rose 8/32 in price, pushing its yield down to 1.5627%. Brent crude oil, the worldwide standard, was unchanged at $59.12 a barrel. US shares were steady, with Dow futures down 0.1% at 29,309.00.

Minutes published Wednesday from the most recent U.S.

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