GLOBAL MARKETS DJIA 35950.56 196.67 0.55% Nasdaq 15653.37 131.48 0.85% S&P 500 4725.79 29.23 0.62% FTSE 100 7373.34 31.68 0.43% Nikkei Stock 28826.65 28.28 0.10% Hang Seng 23218.75 25.11 0.11% Kospi 3012.50 14.33 0.48% SGX Nifty* 17149.50 77.5 0.45% *Dec contract USD/JPY 114.37-38 -0.03% Range 114.51 114.33 EUR/USD 1.1326-29 -0.01% Range 1.1333 1.1323 CBOT Wheat March $8.146 per bushel Spot Gold $1,809.40/oz 0.1% Nymex Crude (NY) $73.90 $1.14 U.S. STOCKS
U.S. stock indexes closed higher in the holiday-shortened trading week, with the S&P 500 notching a new high, as investors digested economic data and developments related to the Omicron variant's spread.
The S&P 500 was up 0.6%, or 29.23 points, at 4725.79, its 68th record close in 2021. Thursday's rise, its third consecutive daily increase, followed a Wednesday session during which strong economic data helped ease investors' concerns about the risks posed by Covid-19 and inflation. The tech-focused Nasdaq Composite rose 0.85%, or 131.48 points, to 15653.37. The Dow Jones Industrial Average added 0.55%, or 196.67 points, to 35950.56.
ASIAN STOCKS
Japan's Nikkei Stock Average was up 0.1% at 28837.02, led by gains in electronics and e-commerce stocks, as the yen weakened to a one-month low. USD/JPY rose to 114.50, the highest level since Nov. 26, driven by the prospects of the Fed's policy tightening next year, compared with 114.18 as of Thursday's Tokyo stock market close. Investors remained focused on any Covid-19-related updates, including drug development.
South Korea's Kospi rose 0.8% to 3023.38, tracking Wall Street gains overnight. The severity of the Omicron variant's situation seemed to be lessening, providing a source of optimism, while the U.S. economic recovery remained on track, IG said.
Hong Kong's Hang Seng Index rose 0.4% to 23280.00, led by casino operators. With the Christmas holiday approaching, market turnover could continue to shrink and the HSI's trading range might be narrow today, KGI Research said. The Hang Seng TECH Index was 0.5% higher at 5668.74.
Chinese shares were lower in early trade amid declines by travel-related companies after the country locked down the city of Xian to combat a Covid-19 outbreak there. Other decliners include coal companies. The Shanghai Composite Index fell 0.4% to 3628.90, the Shenzhen Composite Index declined 0.9% to 2501.54 and the ChiNext Price Index was 1.6% lower at 3319.58.
FOREX
Asian currencies consolidated against USD in somewhat thin trading ahead of Christmas holiday weekend. As the holidays approach and liquidity dries up, consolidation will be the theme in currency markets, TD Securities said. With recent Fed speak indicating that March is "live," however, the brokerage continues to think risk-reward favors respecting that outcome, and hence, supporting USD firmness in 2022. USD/KRW rose 0.2% to 1,187.55 while USD/SGD was little changed at 1.3583 and AUD/USD fell 0.2% to 0.7233.
METALS
Gold edged higher in the Asian morning session and may have a bright outlook next year. The precious metal was expected to have a strong 2022, as risks to the outlook remain elevated, Oanda said. This would probably result in more policy easing from Beijing, the Fed taking a dovish stance on rate increases in the summer and a weakening USD as investors bet on Europe's growth potential, Oanda added. Spot gold was up 0.1% at $1,809.40/oz.
OIL SUMMARY
The Brent crude price was weighed by the continued spread of the Omicron variant of Covid-19 in Europe at a time when Chinese growth is also slowing, UOB said. Given the uncertainty over Omicron's negative impact on global energy demand, the Singapore bank downgraded its Brent crude oil outlook from to neutral from positive. It forecast Brent prices to average $70/bbl for 1H of 2022 and $75/bbl for 2H of 2022. Front-month Brent was 0.3% lower at $76.62/bbl. WTI contracts weren't trading due to a holiday.
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(END) Dow Jones Newswires
12-23-21 2215ET