Asia report: Weak tech sector leads most markets lower

Most markets in Asia finished lower on Thursday, as sentiment took a dip on the back of a release from Apple in which it lowered its first quarter guidance.

In Japan, markets remained closed for that country’s extended New Year’s holiday, as the yen strengthened 1.01% against the dollar to last trade at JPY 107.78.

On the mainland, the Shanghai Composite slipped 0.04% to 2,464.36, and the smaller, technology-heavy Shenzhen Composite slid 0.8% to 1,246.37.

South Korea’s Kospi was 0.81% lower at 1,993.70, while the Hang Seng Index in Hong Kong fell 0.26% to 25,064.36.

Technology firms in Seoul were on the back foot after the news release from Apple, with Samsung Electronics falling 2.97% and SK Hynix down 4.79%.

Technology was the theme of the day - in particular, American consumer tech giant Apple, after it warned shareholders that first quarter sales would be lower than previously expected.

The company blamed a slowdown, and the resultant weaker demand, from China for its misfortunes, though it also said that fewer consumers were upgrading to its latest models in other markets.

Apple was criticised in late 2018 over pricing for its new range of iPhone models, with the flagship iPhone XS costing $999 and the ‘budget’ iPhone XR coming in at $749.

Oil prices were higher, with Brent crude last up 1.88% at $55.96 per barrel, and West Texas Intermediate rising 1.59% to $47.29.

In Australia, the S&P/ASX 200 went against the regional trend, and managed to rise 1.36% to close at 5,633.40, with gains across all subindices.

The energy sector was particularly buoyant in Sydney, rising 2.97% after decent gains in crude prices on Wednesday.

Of the major energy firms on the benchmark index, Oil Search added 2.59%, Santos was ahead 3.98%, and Woodside Petroleum rose 3.44%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 returned from its New Year’s holiday to start 2019 in the red, falling 0.9% to 8,732.37.

Both of the down under dollars continued to weaken against the greenback, with the Aussie last off 0.18% at AUD 1.4342, and the Kiwi retreating 0.17% to NZD 1.5054.