GLOBAL MARKETS-Stocks under pressure as Apple sounds warning on coronavirus

* Apple will miss quarterly revenue target due to
coronavirus
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* S&P500 futures down 0.35%; European shares seen falling
0.5-0.6%
* Australian dollar falls; gold, U.S. bonds gain
* European stocks seen falling 0.5-0.6%

By Hideyuki Sano
TOKYO, Feb 18 (Reuters) - Asian shares fell and Wall Street
was poised to retreat from record highs on Tuesday after Apple
Inc AAPL.O said it would miss its March quarter revenue
guidance as the coronavirus slowed production and weakened
demand in China.
The warning from the most valuable U.S. company sobered
investor optimism that stimulus from China and other countries
would protect the global economy from the effects of the
epidemic.
S&P500 e-mini futures ESc1 slipped as much as 0.4% in
Asian trade while Nasdaq futures NQcv1 fell 0.6%.
European stocks were expected to follow suit, with major
European stock futures STXEc1 FDXc1 FFIc1 trading 0.5-0.6%
lower.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 1.0%, while Tokyo's Nikkei .N225 slid
1.4%, dragged down by tech stocks.
China's CSI300 .CSI300 blue chip shares gave up 0.5%,
following a strong rally that was fuelled by hopes Beijing would
introduce more policy stimulus.
China's central bank cut the interest rate on its
medium-term lending on Monday, paving the way for a likely
reduction in the benchmark loan prime rate on Thursday.
However, sentiment took a subsequent knock as Apple said
factories in China were re-opening but ramping up more slowly
than expected, reinforcing signs of a broader hit to businesses
from the epidemic. "Apple is saying its recovery could be delayed, which could
mean the impact of the virus may go beyond the current quarter,"
said Norihiro Fujito, chief investment strategist at Mitsubishi
UFJ Morgan Stanley Securities.
"If Apple shares were traded cheaply, that might not matter
much. But when they are trading at a record high, investors will
be surely tempted to sell."
Asian tech shares were also hit. Samsung Electronics
005930.KS dropped 2.9%, Taiwan Semiconductor Manufacturing Co
(TSMC) 2330.TW lost 2.9% and Sony Corp 6758.T shed 2.5%.
In China, the number of new Covid-19 cases fell to 1,886 on
Monday from 2,048 the day before. The World Health Organization
cautioned, however, that "every scenario is still on the table"
in terms of the epidemic's evolution. As China's authorities try to prevent the spread of the
disease, the economy is paying a heavy price. Some cities
remained in lockdown, streets are deserted, and travel bans and
quarantine orders are in place around the country, preventing
migrant workers from getting back to their jobs.
Many factories have yet to re-open, disrupting supply chains
in China and beyond, as highlighted by Apple.
"Lifting travel restrictions is taking longer than expected.
Initially we thought lockdowns would end in February and factory
output would normalise in March. But that is looking
increasingly difficult," said Ei Kaku, currency strategist at
Nomura Securities.
Nomura downgraded its China first-quarter economic growth
forecast to 3% from a year earlier, half the pace of the fourth
quarter, from its previous forecast of 3.8%.
Nomura says there was a risk it could be even weaker.
Also hurting market sentiment was news that the Trump
administration is considering changing U.S. regulations to allow
it to block shipments of chips to Huawei Technologies HWT.UL
from companies such as Taiwan's TSMC, the world's largest
contract chipmaker. Bonds were in demand, with the 10-year U.S. Treasuries yield
falling 4.2 basis point to 1.546% US10YT=RR after a U.S.
public holiday on Monday.
Safe-haven gold XAU= also rose 0.3% to its two-week high
of $1,587.00 per ounce. GOL
In the currency market, the yen ticked up 0.15% to 109.69
yen per dollar JPY= while the risk-sensitive Australian dollar
lost 0.4% to $0.6686 AUD=D4 . The yuan was steadier for now,
trading at 6.9950 yuan per dollar CNY=CFXS .
The euro, grappling with worries about sluggish growth in
the euro zone, edged down 0.1% to $1.0833 EUR= , near its
33-month low of $1.0817 touched on Monday.
Oil prices slipped on fresh concerns over the economic
impact of the coronavirus outbreak in China. O/R
Brent crude LCOc1 fell 0.6% to $57.30 a barrel, while U.S.
West Texas Intermediate (WTI) crude CLc1 slipped 0.3% to
$51.90 a barrel.
London copper prices also retreated 0.3% to $5,797 a tonne,
slipping from Monday's three-week high. MET/L .