Seoul Gazette - Stocks struggle on rate fears, tech shares drop

Apple shares tumbled 4.6 percent at the open of trading after falling sharply the day before on reports that China was banning central government officials from using iPhones at work.

Interest rate concerns were sparked by the latest data on new claims for US unemployment benefits coming in at its lowest weekly level since February at 216,000.

"That is really good news -- economically speaking -- but it is also news -- monetary policy speaking -- that will likely keep the Fed in a restrictive policy position for longer," said market analyst Patrick O'Hare at Briefing.com.

The US Federal Reserve has indicated it will decide whether it needs to raise interest rates further depending on economic data.

The Fed has already hiked interest rates 11 times since March last year to control runaway inflation, raising its key lending rate in July to its highest level for 22 years.

The unemployment claims data is one of the most current indicators policymakers have on the economy.

Wall Street stocks opened lower, with the Dow slipping less than 0.1 percent.

But the broader S&P 500 shed 0.7 percent and the tech-heavy Nasdaq slumped 1.5 percent, with shares in Amazon, Microsoft and Google parent Alphabet also in the red.

Apple shares have taken a big hit since the Wall Street Journal reported Wednesday that China barred the use of its smartphones in central government agencies.

"The worry for the market is that, if China purposely chooses to make business difficult for a company like Apple, which has a good and important working relationship in China, then it can do so for a lot of other US companies doing business in China," O'Hare said.

Europe's main stock markets were mixed in afternoon trading, with data showing slight economic growth in the eurozone helping contain losses.

The eurozone economy eked out 0.1 percent growth in the second quarter, official data showed, but this was weaker than the prior estimate of 0.3 percent.

The European Union's Eurostat data agency also revised its first-quarter figures, saying the economy grew 0.1 percent and did not stagnate as previously thought, but commentators say the outlook is still weak.

Asian equities sank sharply, with sentiment also hammered by data showing China's exports and imports sank again in August, sparking slowdown fears and sending the onshore yuan to a 16-year dollar low.

The onshore Chinese unit, whose trade is regulated by Beijing, touched 7.3284 -- a level last seen in December 2007.

The disappointing yet expected trade figures add to growing pressure on authorities to introduce fresh stimulus for the world's number two economy even as the data showed some sign of improvement.

"There appears to be two major sources of concerns for investors right now: Weak growth in the eurozone and China, and interest rates remaining higher for longer in the United States," said City Index analyst Fawad Razaqzada.

- Key figures around 1330 GMT -

New York - Dow: DOWN less than 0.1 percent at 34,429.11 points

London - FTSE 100: UP 0.3 percent at 7,447.46

Frankfurt - DAX: DOWN less than 0.1 percent at 15,735.25

Paris - CAC 40: UP 0.2 percent at 7,207.92

EURO STOXX 50: DOWN 0.2 percent at 4,229.73

Tokyo - Nikkei 225: DOWN 0.8 percent at 32,991.08 (close)

Hong Kong - Hang Seng Index: DOWN 1.3 percent at 18,202.07 (close)

Shanghai - Composite: DOWN 1.1 percent at 3,122.35 (close)

Euro/dollar: DOWN at $1.0698 from $1.0727 on Wednesday

Dollar/yen: DOWN at 147.19 yen from 147.66 yen

Pound/dollar: DOWN at $1.2468 from $1.2507

Euro/pound: UP at 85.78 pence from 85.76 pence

West Texas Intermediate: DOWN 0.4 percent at $87.16 per barrel

Brent North Sea crude: DOWN 0.4 percent at $90.27 per barrel

burs-rl/lth

J.Lim--SG