Indian Morning Briefing: Mixed Asian Markets

GLOBAL MARKETS 
DJIA             31880.24    618.34     1.98% 
Nasdaq           11535.27    180.66     1.59% 
S&P 500           3973.75     72.39     1.86% 
FTSE 100          7513.44    123.46     1.67% 
Nikkei Stock     26895.37   -106.15    -0.39% 
Hang Seng        20388.78    -81.28    -0.40% 
Kospi             2627.97    -19.41    -0.73% 
SGX Nifty*       16206.50      31.0     0.19% 
*May contract 
 
USD/JPY    127.76-77    -0.10% 
Range      128.08   127.64 
EUR/USD    1.0665-68    -0.23% 
Range      1.0696   1.0547 
 
CBOT Wheat July $11.900 per bushel 
Spot Gold   $1,853.87/oz  0.1% 
Nymex Crude (NY) $110.35 $0.07 
 
 
US STOCKS 

U.S. stocks rose, led by the financial sector, as the S&P 500 moved away from bear market territory after flirting with such low levels in a volatile trading session on Friday.

The S&P 500 advanced 1.9% while the Dow Jones Industrial Average rose 2%. The technology-focused Nasdaq Composite Index rose 1.6%. All 11 sectors of the S&P 500 were up. Financials are doing the best with an increase of 3.7%. JPMorgan Chase rose about 7.3% after offering updated guidance in a presentation and painting a better picture of the economic outlook. The bank said it expects to benefit from loan growth and rising interest rates.

“Overall, the short-term credit outlook, particularly for the US consumer, remains strong,” said Jeremy Barnum, chief financial officer of JPMorgan Chase. Goldman Sachs rose 4.1%, while the KBW Nasdaq Bank Index was ahead 4.7%.

 
 
ASIAN STOCKS 

Japan’s Nikkei Stock Average fell 0.1% to 26,966.25 amid continued concerns over rising borrowing, fuel and materials costs. Technology and pharmaceutical stocks led the declines and offset gains from financials and trading companies. The Topix broad stock index rose 0.1% to 1895.97. Investors were focused on the Tokyo summit of the leaders of the United States, Japan, Australia and India later in the day and its implications for global trade.

South Korea’s Kospi fell 0.3% to 2640.44 in early trading, dragged down by losses in internet, technology and auto stocks. Concerns about persistently high inflation, which could dampen economic growth, weighed on sentiment as the Bank of Korea’s main index for inflation expectations among consumers rose for a fourth consecutive month in May to reach a high of almost ten years. Growth stocks fell.

Hong Kong’s Hang Seng index fell 1.3% to 20206.32 after swinging between gains and losses after the open. It was hoped that the United States would lower tariffs on Chinese imports following remarks by President Biden that he was considering such a move. The overnight rise in Treasury yields could also support Hong Kong banking stocks, KGI Research said in a morning commentary. The Hang Seng TECH index fell 1.8% to 4101.47.

Chinese stocks fell in early trading, despite local reports indicating that China will take targeted measures to support its economy amid the pandemic. The Shanghai Composite Index fell 0.1% to 3144.46, the Shenzhen Composite Index fell 0.4% to 1986.16 and the ChiNext Price Index fell 1.0% to 2384.05. Sentiment can be weighed in the short term. “Markets have been glimpsing the impact of regulatory risks and Covid-19 lockdowns on Tencent’s recent lackluster earnings and the potential reflection of weak big tech earnings ahead could prompt caution,” the statement said. IG market analyst Yeap Jun Rong in a note. Auto stocks were mixed.

 
FOREX 

Most Asian currencies weakened against the USD in the Asian morning session as risk aversion spurred by losses in US equity futures and most regional equity markets added to the attractiveness of the greenback as a safe haven. For Tuesday, sentiment among Asian currencies excluding Japan could be cautious ahead of the FOMC meeting minutes later this week, which could fuel future U.S. rate hike expectations, analyst Jeff Ng said. MUFG Bank’s currency principal, in a research report. USD/KRW rose 0.5% to 1,265.03 and USD/SGD gained 0.2% to 1.3759, while AUD/USD fell 0.5% to 0 ,7074.

 
METALS 

Gold prices were higher at the start of Asian trading, supported by a weaker dollar. “If the dollar continues to weaken, gold should find resistance around the $1,885 level,” Edward Moya, senior market analyst at Oanda, said in a note. Further stimulus from China’s central bank and hopes that the US Fed may ease rate tightening should also be positive for gold, Moya added. Spot gold rose 0.1% to $1,853.87 an ounce.

 
OIL SUMMARY 

Oil prices were lower at the start of Asian trading. There are signs that the EU’s proposed ban on Russian oil is looking increasingly unlikely, ANZ analysts said in a note. “Hungary resisted the unilateral ban, asking for more time to allow it to find alternative sources,” the analysts noted. However, Stephen Innes, managing partner at SPI Asset Management, said the EU embargo on Russian oil is a matter of “when” not “if”. “We cannot rule out a spike in prices if an embargo occurs alongside an increase in demand due to US seasonal effects and Chinese restrictions ease,” Innes said. First-month WTI and Brent crude each fell 0.6% to $109.60/bbl and $112.72/bbl, respectively.

 
 
TOP HEADLINES 
Fed Officials Weigh Future Rate Policy Shift 
Biden Exploring Release of Diesel Fuel Reserves Amid High Prices 
At Davos Confab, CEOs Fret Over Economy, Start to Plan for a Downturn 
JPMorgan Says U.S. Consumers Are Doing Just Fine 
Federal Reserve Leadership Is Formally Sworn In 
Americans Reported Strong Personal Finances Late Last Year, Fed Finds 
Lagarde Signals End to ECB's Negative Interest Rates Experiment 
Biden Says U.S. Would Intervene Militarily if China Invaded Taiwan 
U.N. Human-Rights Chief Kicks Off Closely Watched China Trip 
Australia's New Leader, Once a Left-Wing Firebrand, Promises to Unite 
Iran Vows Revenge for Killing of Senior Revolutionary Guard Member in Tehran 
Cawthorn Faces Investigation by House Ethics Panel 
Face Masks Required Again in Philadelphia Schools 
Zoom Sales Growth Slows as Pandemic Boom Wanes 
Snap Issues Profit Warning on Economic Conditions Including Inflation 
Airbnb to Quit China Business Amid Lockdowns, Competition 
Broadcom Discussing Paying Around $140 a Share for VMware, People Say 
Zuckerberg Is Sued by D.C. Attorney General 
China's HNA Found to Owe $185 Million Over Bankrupt Manhattan Skyscraper 
SEC Fines BNY Mellon Over ESG Claims 
Smallpox Vaccine Enters Wider Production Amid Monkeypox Outbreak 
 
 

(END) Dow Jones Newswire

05-23-22 2316ET

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