Apple-related stocks hammered in China, Hong Kong markets after US smartphone giant cuts revenue outlook
- Apple blames China slowdown for weakening sales
- Meanwhile, Geely Automobile takes an 8.2 per cent hit after Morgan Stanley downgrade
- Hang Seng ends 0.35 per cent lower at 25,042.61
Hong Kong and Chinese stocks struggled for direction on Thursday, ending the session with marginal losses, as Apple suppliers were hammered after the smartphone giant slashed its revenue outlook based on weaker-than-expected iPhone sales in China.
The Hang Seng Index closed down 0.35 per cent, or 87.74 points, at 25,042.61. At one point during the session the benchmark index plunged below the 25,000 level before recovering, a level that has not been breached since October.
The gains come a day after Hong Kong’s benchmark index plummeted 2.8 per cent on Wednesday, in the worst first trading day of a new year in over two decades.
“The plunge at the start of the year was worse than I thought, even though I expected a decline,” said Kenny Tang Sing-hing of China Hong Kong Capital Asset Management. “The first quarter will be full of uncertainties and the market is likely to see-saw.”
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Stocks on the mainland were little changed. The Shanghai Composite ended down 0.04 per cent, or 0.93 point, to 2,464.36, while the CSI 300 of large caps dropped 0.16 per cent, or 4.70 points, to 2,964.84.