GLOBAL MARKETS DJIA 32155.40 336.26 1.06% Nasdaq 11428.15 239.31 2.14% S&P 500 3919.29 63.53 1.65% FTSE 100 7637.11 88.48 1.17% Nikkei Stock 27285.87 63.83 0.23% Hang Seng 19722.61 474.65 2.47% Kospi 2390.94 41.97 1.79% SGX Nifty* 17209.50 98 0.57% *March contract USD/JPY 134.12-13 -0.08% Range 134.61 134.03 EUR/USD 1.0756-59 +0.23% Range 1.0761 1.0726 CBOT Wheat March $6.864 per bushel Spot Gold $1,900.67/oz -0.1% Nymex Crude (NY) $71.44 -$3.36 U.S. STOCKS
Bank stocks climbed and Treasury yields rose Tuesday, as some traders anticipated that financial-sector distress could remain contained and leave the Federal Reserve free to focus on tackling inflation.
Trading steadied compared with Monday's stormy session, which brought a deep rout for bank stocks and a rally for government bonds. Over the past week, the collapse of Silicon Valley Bank and the shutdowns of Signature Bank and Silvergate Capital heaped new fears of financial strain on top of investors' yearlong preoccupation with inflation.
The S&P 500 rose 63.53 points, or 1.6%, to close at 3919.29. The Dow Jones Industrial Average added 336.26 points, or 1.1%, ending at 32155.40, and the tech-centric Nasdaq Composite climbed 239.31 points, or 2.1%, to 11428.15.
ASIAN STOCKS
Japanese stocks were higher in early trade, led by gains in financial stocks, following recent selloffs and as fears ease about the U.S. banking sector. Investors remain focused on any fallout following the collapse of Silicon Valley Bank, as well as any policy-related developments. The Nikkei Stock Average was up 0.4% at 27319.06, following Tuesday's 2.2% loss.
South Korea's benchmark Kospi rose 1.2% to 2377.67 in early trade, regaining ground from the prior session's selloff prompted by a U.S. banking crisis. The rebound was being led by financial, transport and airline stocks. Wall Street's gains overnight and calming fears over the collapse of Silicon Valley Bank were renewing risk appetite. Date also showed that U.S. inflation eased in February, allaying concerns about the Fed's pace of rate increases. USD/KRW was 0.5% lower at 1,305.20.
Hong Kong's Hang Seng Index rose 2.1% to 19660.03 in early trade, tracking Wall Street's rebound. There has been a relief rally, said Commerzbank analysts, noting overnight rebound in U.S. and European stocks as worries abated over contagion in the banking sector. Gains on the HSI were led by technology and internet-related shares. The Hang Seng Tech Index was 3.4% higher at 3919.30.
Chinese shares were higher in early trade. UOB analysts said they expect Asian equities in general to find firmer footing today, as concerns over the fallout from the collapse of Silicon Valley Bank subsides. The benchmark Shanghai Composite Index gained 0.6% to 3263.90, the Shenzhen Composite Index rose 0.7% to 2090.31 and the ChiNext Price Index added 0.7% to 2359.56. Auto shares rose. Among liquor stocks, Kweichow Moutai added 0.5% and Wuliangye Yibin advanced 1.6%.
FOREX
Most Asian currencies strengthened against USD in the morning session as risk appetite rebounds. Both headline and core U.S. inflation readings matched expectations, and at least for now, the data having not surprised too much provides room for the Fed to conduct more cautious 25bp rate increases, IG said. The anchoring of less-hawkish expectations has given a catalyst for risk sentiment to recover, it added. USD/KRW fell 0.5% to 1,298.26, USD/SGD dropped 0.2% to 1.3417 while AUD/USD was up 0.4% at 0.6709.
METALS
Gold edged lower in the early morning Asian session amid higher U.S. Treasury yields, which undermine the appeal of the non-interest-bearing precious metal. The price of gold is lower as Treasury yields recover after a largely in-line U.S. inflation report has quelled notions that the Fed could pause rate increases, said Oanda. As long as the U.S. PPI data due later today doesn't come in "scorching hot," gold should find a range around $1,900/oz, it added. Spot gold was down 0.1% at $1,900.67/oz.
OIL SUMMARY
Oil rose in the morning Asian session amid positive sentiment spurred by Wall Street's rally overnight and a likely technical rebound after oil futures posted their lowest close of this year. Chinese economic data including industrial output figures could provide some upside momentum to crude-oil prices, said CMC Markets. Front-month WTI crude oil futures rose 1.3% to $72.28/bbl; front-month Brent crude oil futures were 1.2% higher at $78.40/bbl.
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(END) Dow Jones Newswires
03-14-23 2315ET
