GLOBAL MARKETS DJIA 34798.00 33.18 0.10% Nasdaq 15047.70 -4.54 -0.03% S&P 500 4455.48 6.50 0.15% FTSE 100 7051.48 -26.87 -0.38% Nikkei Stock 30350.67 101.86 0.34% Hang Seng 24470.52 278.36 1.15% Kospi 3143.37 18.13 0.58% SGX Nifty* 17959.00 101 0.57% *Sep contract USD/JPY 110.61-62 -0.11% Range 110.80 110.61 EUR/USD 1.1721-24 +0.02% Range 1.1730 1.1716 CBOT Wheat Dec $7.236 per bushel Spot Gold $1,759.29/oz 0.5% Nymex Crude (NY) $74.04 $0.74 U.S. STOCKS
The Dow Jones Industrial Average and the S&P 500 ticked up on Friday, clinching weekly gains despite uncertainty over the fate of indebted property giant China Evergrande Group.
The Dow added 33.18 points, or 0.1%, to close at 34798.00. The S&P 500 rose 6.50, or 0.1%, to 4455.48. The technology-heavy Nasdaq Composite slipped 4.54, or less than 0.1%, to 15047.70.
ASIAN STOCKS
Japan's Nikkei Stock Average was up 0.3% at 30352.40, led by gains in airlines and railway operators, on hopes for economic reopening and government policy stimulus. Local media reports said that the government was considering ending its Covid-19 state of emergency at the end of the month. Investors were focused on Japan's ruling-party chief election, set for Wednesday, and any policy implications.
South Korea's Kospi climbed 0.2% to 3131.10 in early trade, recovering slightly from last week's weakness, as gains in the chemicals and biotech sectors outweighed weakness in auto makers and travel stocks. Index heavyweight Samsung Electronics edged 0.1% lower.
Hong Kong's Hang Seng Index was 0.6% higher at 24331.41. Trading volumes could remain thin ahead of China's Golden Week holiday next week, KGI Securities said. Oil major CNOOC was the top gainer, up 4.2%, aided by the strength in oil prices, KGI Securities said. Other gainers include healthcare and financial stocks. China Evergrande New Energy Vehicle shares fell 25% to HK$1.67 after warning of cash squeeze and shelving Shanghai listing plans.
Chinese stocks rose in early trade, as gains by liquor makers and new-energy sectors more than offset the fall in steel makers and construction-material companies. The Shanghai Composite Index gained 0.3% to 3624.72, the Shenzhen Composite Index was 0.2% higher and the ChiNext Price Index climbed 2.0%.
FOREX
It's unlikely that USD/CNY has seen the end of Evergrande-induced volatility, said Commonwealth Bank of Australia. The risk was that heightened uncertainty following China's regulatory crackdown and nconcerns around contagion risks from Evergrande could weigh on CNY more. It would be important to watch capital flows in coming months to monitor investors' confidence in both the Chinese economy and CNY, CBA added. Strong capital inflows into China's bond market was one of the major CNY supports in late 2020/early 2021. USD/CNY was at 6.4619 early on Monday.
METALS
Gold was slightly higher in Asian trading as hawkish central bank stances have likely been factored in, said Phillip Futures senior commodities manager Avtar Sandu. He said buyers could be expecting that the Evergrande contagion fallout and the U.S. debt-ceiling crisis would support gold prices below $1,740 in the immediate term. Spot gold was recently 0.5% higher at $1,759.29 an ounce.
OIL SUMMARY
WTI oil prices climbed 1.7% to $75.27, on course for highest close since Oct. 3, 2018.
Oil gained in early Asian trade as supply tightness continued to draw on inventories across all regions, said ANZ Research. A rally in the natural gas price improved the economics for oil to produce power, which was exerting upward pressure on oil, said the research firm. China also has started its response to contain oil prices by selling from its strategic petroleum reserve via auction as it did for metals. ANZ said there were some signs of relief for oil supply, as higher oil prices were encouraging rig developments. Front-month WTI was recently up 1.6% at $75.18/bbl and front-month Brent was 1.7% higher at $79.41/bbl.
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(END) Dow Jones Newswires
09-26-21 2315ET
