(Bloomberg) -- Japanese stocks tanked on the first trading day of the New Year as Apple Inc (NASDAQ:AAPL).’s outlook cut helped spark global growth concerns, sending technology shares tumbling.
The blue-chip Nikkei 225 Stock Average was down 3.6 percent as of 9:16 a.m. in Tokyo. The broader Topix gauge fell 3.1 percent, with a group of electronics makers weighing the most. The S&P 500 Index sank 2.5 percent as a weak ISM factory reading stoked recession fears and after Apple cut its revenue forecast, citing struggling iPhone sales in China.
“Belief in global corporate earnings is fading against the backdrop of the U.S.-China trade friction,” said Nobuhiko Kuramochi, head of investment information at Mizuho Securities Co. in Tokyo. “Deteriorating Apple earnings will lead to volume cuts for suppliers including those in Japan, while it could also mean cost-cutting pressures.”
