These Are the Asian Stocks to Watch as China Slows
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Disappointing quarterly results and outlooks from two U.S. industry bellwethers, who blamed a slowdown in demand from China, may send several sectors and stocks markets in Asia lower on Tuesday.
Caterpillar Inc. sent a gloomy signal on Monday when it posted its biggest quarterly profit shortfall in over a decade, and provided a 2019 forecast that trailed some of Wall Street’s estimates. Nvidia Corp., the biggest maker of chips for computer graphics cards, said deteriorating macroeconomic conditions particularly in China hurt its gaming and datacenter platform sales.
Another nail in the coffin for Asian stock performance on Tuesday might be charges brought against Huawei Technologies Co. by the U.S., alleging that it stole trade secrets from an American rival and committed bank fraud by violating sanctions against doing business with Iran.
Here are the stocks to watch:
- Asian machinery stocks may move after Caterpillar reported its biggest quarterly profit miss since at least the beginning of 2008: Komatsu, Hitachi Construction Machinery, Doosan Heavy Industries & Construction, Doosan Infracore, Kobe Steel, Kubota, Tadano, Takeuchi Manufacturing, Seven Group Holdings, Zoomlion Heavy Industry, Sany Heavy Industry, Sany Heavy Equipment, Sumec Corporation, CTCI Corporation, Guangxi Liugong Machinery and XCMG Construction Machinery Co.
- Chip sector stocks in the region may slide after Nvidia cut its outlook for fourth-quarter revenue: Taiwan Semiconductor Manufacturing Co., Hon Hai Precision Industry, Samsung Electronics Co., SK Hynix Inc., Tokyo Electron Ltd., Advantest Corp., Screen Holdings Co., Sumco Corp., Quanta Computer Inc., King Yuan Electronics Co. Ltd., Nanya Technology Corp., Semiconductor Manufacturing International Corp., Tianshui Huatian Technology Co.
- Softbank Group Corp.’s Vision Fund has a stake in Nvidia
- Shares of tech companies in Asia may be volatile after the U.S. accused Huawei of stealing trade secrets, defrauding banks: ZTE Corp.
- Wuhan Fingu Electronic Technology, Shenzhen Sunyes Electronic Manufacturing, and Chinasoft International rely on Huawei for more than 50% of their revenue: Bloomberg supply chain data
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