Apple suppliers recover in Hong Kong after initial pounding on iPhone sales slowdown worries
- AAC Technologies rises by 0.2 per cent at close; other Hong Kong suppliers recover or narrow midday losses
- Japan Display falls the most, by 9.52 per cent
The Hong Kong-listed suppliers of Apple recovered in afternoon trading on Tuesday, following a drop in morning trading. Stocks fell initially because of an overnight technology stock rout in the US led by fears of a steep decline in Apple shares and an escalating US-China trade war.
AAC Technologies rose by 0.2 per cent to close at HK$53.2, after plunging by 7 per cent to HK$49.05 in the morning, weighed down by an expected slowdown in the sales of the iPhone. FIT Hon Tech rose by 0.3 per cent to close at HK$3.65, reversing a loss of 0.8 per cent to HK$3.61. Tongda Group Holdings fell by 1 per cent to close at 96 HK cents, narrowing down a drop of 3 per cent in the morning. Cowell sank 3 per cent to HK$1, narrowing down a decline of 4 per cent.
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The broader Hong Kong market recovered too, closing 0.62 per cent, or 159 points, higher at 25,792, after initially falling by 2.1 per cent in early trading.
“We have seen some investors buying these technology stocks in Hong Kong in the afternoon, as their share prices had dropped to a cheap level, which was attractive,” said Robert Lee, executive director at brokerage firm Grand Finance Group.
“A recovery in mainland China shares in the afternoon also helped Hong Kong-listed Apple suppliers and other technology stocks bounce back.”
Apple suppliers in Japan, however, did not fare as well. Japan Display was down by 9.52 per cent, Murata Manufacturing dropped 4.76 per cent and TDK lost 6.27 per cent on Tuesday. These stocks led declines on the benchmark Nikkei225, which dropped by 2 per cent, or 459 points, to 21,810.52.