GLOBAL MARKETS DJIA 33630.61 700.53 2.13% Nasdaq 10569.29 264.05 2.56% S&P 500 3895.08 86.98 2.28% FTSE 100 7699.49 66.04 0.87% Nikkei Stock CLOSED Hang Seng 21456.63 464.99 2.22% Kospi 2334.02 44.05 1.92% SGX Nifty* 18084.00 125 0.70% *Jan contract USD/JPY 131.38-39 -0.55% Range 132.29 131.37 EUR/USD 1.0674-77 +0.30% Range 1.0679 1.0637 CBOT Wheat March $7.434 per bushel Spot Gold $1,868.69/oz 0.2% Nymex Crude (NY) $73.67 $0.00 U.S. STOCKS
The Dow Jones Industrial Average rallied about 700 points on Friday after fresh data showed a slowdown in wage growth, an upbeat sign for the Federal Reserve's battle against inflation that could ease pressure for further interest-rate increases.
The Dow rose 700.53 points, or 2.1%, to 33630.61. The broad-based S&P 500 climbed 86.98, or 2.3%, to 3895.08. The technology-heavy Nasdaq Composite advanced 264.05, or 2.6%, to 10569.29.
The day's rally put all three major U.S. stock indexes in positive territory for the first week of 2023. All three rose about 1% or more for the week.
The Labor Department's monthly jobs report showed that employers added 223,000 jobs in December, the smallest gain in two years but more than the 200,000 expected by economists.
ASIAN STOCKS
Markets in Japan are closed Monday for a holiday.
South Korea's benchmark Kospi rose 1.8% to 2331.78 in early trade, led by gains in electronics and internet stocks. Foreign and institutional investors were net buyers. The won strengthened versus the greenback with the USD/KRW falling 1.7% to touch an intraday low of 1,246.80, the lowest since early June 2022. Risk-off sentiment was receding as investors focus on the possibility that the U.S. economy could be on track for a soft landing, NH Futures said.
Hong Kong's Hang Seng Index rose 1.2% to 21234.89 as hopes for less Fed tightening helped support risk-on sentiment. Economic data last Friday suggested that the U.S. economy was cooling, easing pressure for further Fed rate increases, the Phillip Securities Research team said. The best performers on the HSI included Sands China, up 4.3%, Alibaba Group, up 4.5%, and Wharf Real Estate Investment, which added 3.1%. The Hang Seng Tech Index was up 1.6% at 4500.65.
?Chinese shares were higher in early trade buoyed by the lifting of border restrictions with Hong Kong from Jan. 8? after being closed for nearly three years. Financial companies and auto makers were leading the gains. CITIC Securities Co. was up 1.0% and Great Wall Motor was 0.7% higher. The rally in property stocks faded, with most trading lower, despite supportive measures announced last week. The Shanghai Composite Index was 0.4% higher at 3169.37, the Shenzhen Composite Index was up 0.3% and the ChiNext Price Index gained 0.5%.
FOREX
Most Asian currencies strengthened against USD in the early Asian session on risk appetite spurred by U.S. economic data. Supportive macro data in recent days have given risk sentiment a boost, RBC Capital Markets said. Also, Asian currencies have been on a tear since the start of the new year amid growing optimism from China's reopening, it added. USD/KRW fell 0.5% to 1,248.81, USD/SGD dropped 0.3% to 1.3344 while AUD/USD was up 0.4% at 0.6904.
METALS
Gold prices rose in early Asian trade amid expectations that the Fed might ease up on policy tightening, which is viewed as supportive of the precious metal. The release of the latest nonfarm payrolls report on Friday showed that wages were cooling, backing the idea that the U.S. central bank could be almost done raising rates, Oanda said. Investors were likely to continue to keep a watch for further signs that inflation was continuing to cool, it added, further underpinning policy easing hopes. Spot gold was up 0.2% at $1,868.69/oz.
OIL SUMMARY
Crude oil prices were higher in early Asian trade after China's easing of border restrictions took effect Sunday. The upside for oil was clear as it has reached a point where China's growth prospects have become more "meaningfully positive," which should benefit demand, said SPI Asset Management. The front-month WTI contract rose 0.7% to $74.36/bbl, while front-month Brent crude futures were up 0.6% at $79.05/bbl.
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(END) Dow Jones Newswires
01-08-23 2215ET
