Yahoo Finance Asian Shares Steady; Samsung Issues Profit Warning
Investing.com - Asian shares steadied in morning trade on Tuesday after tumbling the previous day amid escalating fears over the outlook for the global economy.
China’s Shanghai Composite and the Shenzhen Component were both up 0.1% by 10:15 PM ET (02:15 GMT). Hong Kong’s Hang Seng Index was up 0.5%.
This week’s Boao Forum for Asia is expected to generate some focus. Chinese Premier Li Keqiang will deliver a keynote speech, while People’s Bank of China Governor Yi Gang and Finance Minister Liu Kun are also scheduled to speak.
Shares of Hong Kong-listed Apple supplier AAC Technologies Holdings Inc (HK:2018) fell after Apple Inc (NASDAQ:AAPL)’s new services offerings that were announced overnight failed to excite investors. Other Apple-related stocks in Asia also underperformed.
Japan’s Nikkei 225 gained 2% after plunging more than 3% on Monday.
South Korea’s KOSPI edged up 0.2%. Index heavyweight Samsung Electronics Co Ltd (KS:005930) made headlines after the company issued a rare profit warning.
The company expects its first-quarter earnings to fall short of expectations due to weak demand from its display panels’ customers. Price declines in main memory chip products were larger than expected, the company said in a regulatory filing.
Down under, Australia’s ASX 200 traded near flat at 6,125.80.
Asian stocks tumbled on Monday after Wall Street closed sharply lower last week. The appearance of an inverted yield curve, widely known as a powerful tool to predict a recession, was cited as the catalyst for the selling in stocks.
Goldman Sachs (NYSE:GS) said the plunge in risky assets seen on Monday and last week was a "major overreaction." The bank added that there was more road for upside in risk assets if near-term events such as Brexit and the U.S.-China trade war can be successfully negotiated.
The outlook for risk assets remained "quite bright in an environment of gradually stronger global growth," the bank said.
In other news, the Brexit saga remained in focus after The House of Commons voted 329 to 302 on Monday in the U.K. to take control of the Brexit process from Prime Minister Theresa May.
“It is disappointing to see this amendment pass,” a government spokesman said in an email that was cited by Bloomberg after the vote. The result “upends the balance between our democratic institutions and sets a dangerous, unpredictable precedent for the future.”
“While it is now up to Parliament to set out next steps in respect of this amendment, the government will continue to call for realism – any options considered must be deliverable in negotiations with the EU,” the spokesman said.
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