GLOBAL MARKETS-U.S. stock futures retreat, Asia dips after Apple warns on virus impact

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Hideyuki Sano
TOKYO, Feb 18 (Reuters) - U.S. stock futures slipped from
record levels on Tuesday after Apple Inc AAPL.O said it will
not meet its revenue guidance for the March quarter as the
coronavirus outbreak slowed production and weakened demand in
China.
The warning from the most valuable company in the United
States sobered investor optimism that economic stimulus by
Beijing and other countries would protect the global economy
from the effects of the epidemic.
S&P500 e-mini futures ESc1 dipped as much as 0.2% in early
Asian trade.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.20% while Japan's Nikkei .N225 slid
0.59%.
Apple told investors its manufacturing facilities in China
have begun to re-open but are ramping up more slowly than
expected. "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."
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 on Monday, 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.
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 2330.TW , the world's
largest contract chipmaker. Bonds are in demand, with the 10-year U.S. Treasuries yield
falling 1.0 basis point to 1.578% US10YT=RR after a U.S.
market holiday on Monday.
Safe-haven gold XAU= also rose 0.18% to $1,584.80 per
ounce.
In the currency market, the Australian dollar shed 0.15% to
$0.6707 AUD=D4 . The offshore yuan was little changed at 6.9862
yuan per dollar CNH= .
The yen was little moved at 109.82 yen JPY= while the euro
stood at $1.0836 EUR= , near its 33-month low of $1.0817
touched on Monday, on mounting worries about sluggish growth in
the currency bloc.
Oil prices extended gains to hit their highest levels since
the end of January as expectations of potential production cuts
from major producers offset concerns of slumping demand due to
the coronavirus outbreak.
West Texas Intermediate (WTI) crude CLc1 rose as high as
$52.41 per barrel, before giving up gains to be $51.96 per
barrel, down slightly on the day.