Interconnected

If anyone needs an additional proof that companies and financial markets are tightly integrated across the Pacific, just look at the movement of share prices in the IT industry following the announcement of Steve Jobs resignation as CEO.

On the one hand, shares of Apple’s direct competitors – Samsung, LG and HTC – rose by 1-2% on their respective stock exchanges. On the other hand, the shares of Apple suppliers – Hon hai/Foxcon, Wintek and Catcher Technology – fell by 4-6%.

The surprise came from the Hong Kong stock exchange where the shares of China Unicom – iPhone distributor in China – gained more than 10%, a reminder that second-guessing the reaction of investors is never easy.