Asia report: Apple suppliers in focus after revenue miss

Markets in Asia were in a mixed state as they closed for the weekend on Friday, with suppliers to consumer technology giant Apple on the agenda after the company missed on revenue.

In Japan, the Nikkei 225 was up 0.25% at 28,892.69, as the yen weakened 0.12% against the dollar to last trade at JPY 113.72.

It was a positive day for the major components of the benchmark index, with robotics specialist Fanuc up 0.27%, Uniqlo owner Fast Retailing adding 1.42%, and technology giant SoftBank Group ahead 0.85%.

Apple suppliers were also in focus, with Alps Alpine losing 6.41%, while Murata Manufacturing rose 0.87% and Taiyo Yuden gained 1.23%.

Those moves came after the Cupertino-based computing behemoth missed market expectations for fourth quarter revenue overnight, with chief executive Tim Cook saying supply chain issues were hitting its iPhone, iPad and Mac products harder than anticipated.

The broader Topix index was 0.08% firmer by the end of trading in Tokyo, closing at 2,001.18.

“Apple faces the frustration that there’s no lack of demand for its products - it simply can’t source the microchips required to power them,” said AJ Bell investment director Russ Mould.

“This is despite it probably having better access than other businesses through its longstanding relationships with suppliers in Asia.

“Costs look set to be a challenge too and it will hope it can pass some of these on to customers by leaning on the strength of its brands.”

On the mainland, the Shanghai Composite was ahead 0.82% at 3,547.34, and the smaller, technology-centric Shenzhen Composite was 1.6% higher at 2,400.03.

South Korea’s Kospi was 1.29% weaker at 2,970.68, while the Hang Seng Index in Hong Kong slipped 0.7% to 25,377.24.

Trading in Hong Kong shares of gaming-focussed electronics firm Razer was suspended on Friday, ahead of the release of an announcement.

According to a regulatory release, the yet-to-be-announced news was concerning “inside information of the company, and pursuant to the Hong Kong Code on Takeovers and Mergers”.

The blue-chip technology stocks were on the back foot in Seoul, with Samsung Electronics down 1.27% and SK Hynix behind by 3.29%.

Oil prices were in a mixed state as the region entered the weekend, with Brent crude last up 0.08% at $84.39 per barrel, while West Texas Intermediate was off 0.02% at $82.79.

In Australia, the S&P/ASX 200 lost 1.44% to 7,323.70, as data showed retail sales rising a seasonally-adjusted 1.3% month-on-month in September in the sunburnt country.

That official figure from the Australian Bureau of Statistics was higher than the 0.2% expected by analysts polled by Reuters.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 managed gains of 0.99% to 13,099.82, led higher by payment technology company Pushpay, which jumped 3.8%.

The down under dollars were both weaker against the greenback, with the Aussie last off 0.1% at AUD 1.3269, and the Kiwi retreating 0.34% to NZD 1.3934.