By Andrew Galbraith
SHANGHAI (Reuters) – US stock futures fell and Asian stocks stumbled Thursday following a rare income warning from Apple inc added concerns about slowing global growth and weaker earnings and jolted currency markets.
The European markets are expected to follow, with bookmakers predicting London's FTSE () and Frankfurt's DAX () would open 0.4 percent lower and Paris & # 39; CAC40 () down 0.6 percent.
Apple owed fewer iPhone upgrades and slowed sales in China in its last quarter, its first such warning since 2007. Its shares (O 🙂 wandered over.
The news constituted a "flash crash" in holiday-thinned currency markets as investors rushed to less risky assets, with the Japanese yen rising against most major currencies in seconds.[FRX/]
US stock futures pointed to another tough start on Wall Street, with Nasdaq E-mini futures () down 2.6 percent and E-mini futures () 1.6 percent.
MSCI's widest scale for Asia-Pacific stocks outside Japan () fell 0.6 percent after an early attempt to jump. Japanese markets were closed for vacation, but futures () fell 2.2 percent.
Shares in China () and Hong Kong () are seen between gains and losses as investors waited for Beijing to roll out new support measures for the chilling Chinese economy.
"Chinese authorities have been wanting to have control not only about the fiscal aspects of the government tool case, but also the monetary parts … and I suppose the Chinese authorities will use it," said Jim McCafferty, head of equity research, Asia ex. -Japan at Nomura.
China's central bank said late Wednesday that it was policy adjustment for the benefit of several small businesses who have difficulty getting funding, in its recent move to ease the private sector tribes, a key job-creating.
While more fiscal and monetary support was expected over the coming months in addition to modest measures last year, some analysts speculate whether more vigorous stimulation would be needed to stabilize the world's second largest economy.
"Despite a more pro-growth stance, effective since mid-2018, we expect growth to continue to slow down for the foreseeable future, as it seems to us that government policy is still behind the curve," says the economists at BofA Merrill Lynch in a global survey report.
"In our opinion, the next significant stimulus can only occur when the government feels that financial stability is at risk."
Apple's surprise message weighed tech stocks across Asia, especially in Taiwan and South Korea. An MSCI index for Korean stocks <.mikr00000pus> lost 1.8 percent and Taiwan shares <.mitw00000pus> fell 1.4 percent.
Australia bucked the trend, with ASX 200 () jumping 1.4 percent after the previous day's drubbing. A sudden fall in the dollar, which fell to almost a decade decline at some point, increased the stocks of miners and other resource exporters despite the weakening in China demanding outlook.
The fleeting day for Asia followed swings on Wall Street overnight, with stocks slipping in early trading on growth issues before complaining of back losses, as rising oil prices drove gains on energy stocks. ()
Apple specifically emphasized slowing Chinese growth and Chinese-US trade tensions, exacerbating investors' health concerns in the global economy.
"The fall in the EM manufacturing PMI last month was quite broad and supports our perception that the growth of the new world as a whole will slow this year," says Finance Manager Gabriella Dickens in a note.
Adding to the miserable mood gave a meeting of US President Donald Trump and congressional leaders no agreement to end a partial public shutdown.
Trump's $ 5 billion in funding for a wall along the US-Mexico border triggered the disruption, affecting about a quarter of the federal government and 800,000 federal workers.
& # 39; FLASH CRASH & # 39;
Foreign exchange markets experienced a wild rise in early Asian trading volatility, with risk aversion pushing the yen significantly higher against US dollars, breaking the key technical levels and triggering stop-loss sales of US and Australian dollars.
The dollar was last 1.9 percent weaker against the yen
The euro () rose by 0.2 percent and bought $ 1,1365, and the () which tracks the US currency against a basket of big rivals was 0.3 percent weaker at 96.504.
(For a graphic at & # 39; Currency Flash Crash & # 39; click https://tmsnrt.rs/2RvrCQi)
During the flight to perceived security, the return on benchmark was 10-year government bonds () of 2,6328 percent compared to its US close to 2,661 percent on Wednesday.
The two-year dividend () was 2.4777 percent compared to a US close to 2.504 percent, as signs of slower growth ate away by expectations of further Federal Reserve interest rate hikes.
US commodities () fell 2.1 percent to $ 45.57 per share. Barrel and Brent crude () were down 1.2 percent at $ 54.24. The slow global growth is expected to coincide with an increase in commodity supply, depressing prices.
Gold was higher when the dollar weakened