Asian shares fell and Wall Street retreated from record highs on Tuesday after Apple Inc 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 dipped as much as 0.3% in Asian trade. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.65% while Tokyo’s Nikkei slid 1.0%. Shanghai shares dipped 0.2%, having gained in nine of the past 10 sessions largely on hopes for policy support by Beijing. China’s central bank cut the interest rate on its medium-term lending on Monday, which is expected to pave the way for a reduction in the benchmark loan prime rate on Thursday. But sentiment was shaken when Apple told investors its manufacturing facilities in China have begun to re-open but are 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 dropped 2.1%, Taiwan Semiconductor Manufacturing Co (TSMC) lost 1.7% and Sony shed 2.6%. 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.