Kospi falls 2.5% as technology shares slide and Australia raises rates to 4.85%
Key Facts
Asian stocks traded mixed on Tuesday, with South Korea’s Kospi falling 2.5% to 5,712.57 points, while Hong Kong’s Hang Seng rose 0.3% to 23,469.64 points and the Shanghai Composite fell 0.7% to 3,614.17 points, according to the Associated Press. Technology stocks came under the clearest pressure in South Korea and Taiwan, two markets where the sector carries significant weight, after a Wall Street selloff. Memory chipmaker SK Hynix fell 3.6%, while Samsung Electronics declined 2.9%. The agency linked the drop in Asian technology shares to the U.S. selloff, while index moves showed diverging performance across regional markets. In Australia, the central bank raised its target interest rate on the same day, as inflation remained elevated and its expected return to the midpoint of the target range was delayed.
Six members of the Reserve Bank of Australia board voted to raise the target interest rate by 25 basis points to 4.85%, while three preferred to hold it at 4.60%, the Australian Broadcasting Corporation reported. The decision puts the rate at its highest level since late 2008, according to the broadcaster. The vote reflected a split on the board between raising rates and holding them, with the minority favoring a level of 4.60%. In its November report, the bank said inflation was not expected to return to the midpoint of its 2%–3% target range before mid-2028. That timeline makes elevated inflation central to the bank’s assessment of monetary policy.
In August, the bank had projected that inflation would return to the midpoint of its target range in early 2028, before its November report pushed the timing back to mid-year. The bank attributed the prolonged pressures to recent increases in global fuel prices, as well as domestic price and cost pressures. It said these factors meant inflation would remain above its target level for longer. It also forecast that the economy would slow over the coming years. The outlook combines a fresh monetary tightening with an expected economic slowdown, as the bank expects inflation’s return to the midpoint of the 2%–3% range to remain distant until mid-2028.
Apple reported revenue of $114.5 billion in its fiscal September quarter, up 12% year over year, while diluted earnings per share rose 14% to $2.10, according to the company’s announcement. Chief Executive John Ternus said revenue reached a quarterly record, iPhone revenue set a quarterly record, and services revenue reached a new all-time high. The company added that the quarter capped a strong fiscal year, with record annual revenue of $479 billion and double-digit earnings-per-share growth. Results topped analysts’ average forecasts for revenue and earnings per share, according to the Associated Press. However, the company forecast its gross margin would fall from 47.9% in the fourth quarter to a range of 45%–46% in the December quarter.
Apple attributed its forecast margin contraction in the December quarter to higher memory costs, along with expenses for the launch of its AI-powered Siri. The stock closed the Nov. 2 session down 1.8% at $338.32, then fell 2.6% to $329.60 during the earnings call, according to the Associated Press. Daily closing data for the stock show it declined from $347.10 on Oct. 27 to $338.32 on Nov. 2. The stock’s response during the trading session and earnings call came despite year-over-year growth in quarterly revenue and earnings per share. The company’s guidance for the coming period centers on an expected decline in the December-quarter margin, alongside continued pressure from memory costs and Siri launch expenses.