The regional Asian equity markets were sharply lower during the Asian trade session on Tuesday. Apple, Inc. warned about supply disruptions with the iPhone, which could affect profits. These concerns come from factory closures in China over the coronavirus outbreak.
In Japan, the Nikkei 225 was down well over 1.1 percent extending losses seen on Monday. The broader Topix index, in Tokyo, was down one percent. Shares of tech conglomerate Softbank shed 3.47 percent.
In South Korea, the Kospi composite index was down over one percent and elsewhere in the Asian region, the Australian ASX 200 fell 0.20 percent.
In Hong Kong, the Hang Seng index was down nearly one percent and on the mainland, in China, the Shanghai composite fell 0.16 percent. The smaller Shenzhen composite was up 0.33 percent and the Shenzhen component was flat.
Apple Inc. Warns about Product Supply and Revenue
Manufacturing companies in Asia, who supply Apple, were all down sharply. Apple warned that they could miss their quarterly revenue forecast as iPhone parts will come up short thanks to the coronavirus outbreak.
Apple also said that demand for their products in China will also be lower as their stores are closed.
The tech giant makes most of its iPhones and other high-tech products in China. The viral outbreak has caused factories, in China, to temporarily close as well as Apple retail stores. Some Apple stores have recently reopened but on a limited schedule.
Asian Traders try to assess the Economic Damage from the Coronavirus
The Chinese yuan and Japanese yen both traded steady during the Asian session as traders monitor the coronavirus.
Regional economies, like Singapore, have already reduced their economic outlook. China is introducing both fiscal and monetary policy measures to insulate their economy and Forex traders will be watching Japanese trade data, scheduled for release later today.