Indian Morning Briefing: Asian Markets Higher Tracking Gains on Wall Street
GLOBAL MARKETS DJIA 34194.06 95.96 0.28% Nasdaq 11285.32 110.91 0.99% S&P 500 4027.26 23.68 0.59% FTSE 100 7465.24 12.40 0.17% Nikkei Stock 28450.62 334.88 1.19% Hang Seng 17626.64 102.83 0.59% Kospi 2432.14 14.13 0.58% SGX Nifty* 18480.00 103 0.56% *Dec contract USD/JPY 138.88-89 -0.51% Range 139.66 138.76 EUR/USD 1.0430-33 +0.36% Range 1.0435 1.0393 CBOT Wheat Dec $7.934 per bushel Spot Gold $1,754.05/oz 0.3% Nymex Crude (NY) $77.48 -$3.47 U.S. STOCKS
U.S. stocks rose Wednesday as minutes from the Federal Reserve’s latest meeting showed most officials favored slowing interest-rate increases soon.
The S&P 500 gained 23.68 points, or 0.6%, to 4027.26. The Dow Jones Industrial Average added 95.96 points, or 0.3%, to 34194.06. The Nasdaq Composite jumped 110.91 points, or 1%, to 11285.32.
Japan’s Nikkei Stock Average was up 1.3% at 28477.45 in early trade, in a catch-up rally with Wall Street after the benchmark index was closed Wednesday for a public holiday. Local stocks were also garnering support from the FOMC’s latest meeting minutes that showed most officials favored a slowdown in the pace of rate increases, analysts said. Best performers included NEXON Co. climbing 4.7%, Lasertec adding 4.6% and Z Holdings gaining 4.3%.
South Korea’s benchmark Kospi rose 0.7% to 2435.39 in early trade, led by internet, battery and chemicals stocks. Sentiment was buoyed by Wall Street’s gains overnight after the Federal Reserve’s latest meeting minutes signaled a slower pace of rate increases in the coming months. USD/KRW was 1.1% lower at 1,337.50. Internet giants Naver and Kakao Corp. rose 2.8% and 2.9%, respectively. Battery maker LG Energy Solution gained 1.8%. Posco Chemical added 1.8%.
Hong Kong’s Hang Seng Index was up 1.0% at 17699.95 on stronger investor sentiment. Sentiment likely improved following the FOMC minutes, as several U.S. Fed officials showed support for softening the pace of interest-rate hikes, said SPI Asset Management. Positive global risk sentiment was also likely to persist if U.S.’s November inflation reading improves, it added.
Chinese shares rose in early trade, supported by property developers after Beijing signaled further support for the economy. The State Council said in this week’s meeting that policy makers will “adopt monetary policy tools such as [reserve requirement ratio] cuts when appropriate to keep liquidity at reasonable levels,” Goldman Sachs economists said. The real-estate sector was also being boosted by news that some state-owned banks would provide funding support to the industry. The Shanghai Composite Index added 0.4% to 3108.18, the Shenzhen Composite Index climbed 0.5% and the ChiNext Price Index was 0.4% higher
Asian currencies were mixed versus USD in the morning Asian session, but may strengthen on the minutes of the FOMC’s latest meeting, analysts said. There were perceptions of a more dovish-leaning FOMC, said MUFG Bank’s senior currency analyst Jeff Ng, noting Fed officials supported the need to moderate the pace of rate increases. MUFG Bank said it expected some tailwinds for most regional currencies in Thursday’s session in response to the minutes. USD/JPY fell 0.5% to 138.94 while USD/SGD was little changed at 1.3764 and USD/THB edged 0.1% higher to 36.03.
Gold edged higher in early Asian trade but gains may be short-lived, analysts said. There appear to be signs of buying fatigue from commodity trading advisors, said TD Securities. The recent rally in gold prices seems to have spurred long positions by discretionary money managers, which added vulnerability to a consolidation lower in prices, it added. Spot gold was up 0.3% at $1,754.05/oz.
Oil edged lower in the morning Asian session, weighed by EU’s talks about a Russian oil-price cap. These discussions have placed pressure on oil market with suggested level higher than many were expecting, ING strategists said, noting reports that the price cap may be set as high as $70/bbl. This was above previous reports of around $60/bbl, and around the levels that Russia was already receiving, the strategists said. Talks in EU were slated to continue Thursday, they added. Front-month WTI crude oil futures were 0.3% lower at $77.71/bbl; front-month Brent crude oil futures fell 0.3% to $85.13/bbl.
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(END) Dow Jones Newswires
November 23, 2022 22:15 ET (03:15 GMT)
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