Asia stocks tumble after US rout; Tokyo down 3%
www.straitstimes.com

SYDNEY (BLOOMBERG) - Asian stocks tumbled at the open on Tuesday (Nov 13), with Japanese benchmarks sliding more than 3 per cent, following a tech-led slump on Wall Street overnight thanks to a deteriorating outlook for iPhone sales.

Key indexes slid from Tokyo and Seoul to Sydney, and futures in Hong Kong pointed to a significant drop. Apple suppliers are under pressure after the iPhone maker faltered on signs of a deteriorating sales outlook.

Japan's Topix index slumped 3 per cent as of 9:23am in Tokyo. Australia's S&P/ASX 200 Index dropped 1.7 per cent while South Korea's Kospi index fell 2 per cent.

S&P 500 futures rose 0.1 per cent. The S&P 500 Index fell 2 per cent Monday, when the Nasdaq 100 tumbled 3 per cent.

The Bloomberg Dollar Spot Index was flat after increasing 0.6 per cent Monday to the highest in 18 months.

The yen rose 0.2 per cent to 113.62 per cent while the offshore yuan traded at 6.9665 per dollar.

The pound was steady after declining for a third day as pressure built on UK Prime Minister Theresa May to ditch her Brexit plan, while the euro slumped ahead of more potential stress around Italy's budget. Italian bonds fell as most euro-zone debt edged higher Monday.

The euro traded at US$1.1225, holding onto a 1 per cent slide to the weakest in almost 17 months. The British pound was steady at US$1.2855 after losing 0.9 per cent.

"Investors have a lot to deal with; we always talk about that proverbial wall of worry and that wall right now is pretty high," David Kudla, Mainstay Capital Management chief executive officer and chief investment strategist, said on Bloomberg TV. "We have the issues in China with the growth concerns there, we have the issues in Europe with the battle between the Italy and the EU, the UK getting ready for Brexit. There is some guidance lower on earnings, and a Federal Reserve that is going to raise rates. There is a lot of indigestion among the markets and investors."

Elsewhere, General Electric Co extended a rout after its chief executive officer's attempt to reassure investors fell flat. Goldman Sachs Group fell the most since 2011 after Malaysia's finance minister said the nation would seek a "full refund" over bond deals for its sovereign wealth fund that have landed the company in the midst of corruption probes.

Gold was little changed at US$1,201.75 an ounce.

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