Swiss watchmaker Swatch has issued an apology and pulled ads featuring images of an Asian male model pulling the corners of his eyes up and backwards in a "slanted eye" pose.

The images for the Swatch Essentials collection were widely condemned online in China, where many comments said they appeared to mimic racist taunts about Asian eyes.

In an apology posted in both Chinese and English on its official account on the Weibo social media platform on Saturday, Swatch said that it has "taken note of the recent concerns" and removed all related materials worldwide.

"We sincerely apologise for any distress or misunderstanding this may have caused," it said, also posting the same apology on Instagram.

Swatch, which also makes Omega, Longines and Tissot watches, is heavily exposed to China for revenue, with around 27 percent of the group's sales last year coming from the mainland, Hong Kong and Macau region.

Revenue for the watchmaker last year slumped 14.6 percent to 6.74 billion Swiss francs, hit by a downturn in demand in China, where Swatch said it was seeing "persistently difficult market conditions and weak demand for consumer goods overall". (Reuters)