Subcriber Note: This newsletter will resume at 0300 GMT on Tuesday. Markets in India are closed on August 15 for Independence Day. GLOBAL MARKETS DJIA 33336.67 27.16 0.08% Nasdaq 12779.91 -74.89 -0.58% S&P 500 4207.27 -2.97 -0.07% FTSE 100 7465.91 -41.20 -0.55% Nikkei Stock 27819.33 -180.63 -0.65% Hang Seng 20082.43 471.59 2.40% Kospi 2523.78 42.90 1.73% SGX Nifty* 17693.00 4.5 0.03% *August contract USD/JPY 133.44-45 +0.32% Range 133.49 132.88 EUR/USD 1.0309-12 -0.10% Range 1.0339 1.0305 CBOT Wheat Sept $8.106 per bushel Spot Gold $1,787.96/oz -0.1% Nymex Crude (NY) $94.09 $2.16 U.S. STOCKS
U.S. stocks ran out of steam Thursday, giving up gains despite additional data suggesting that inflation might be peaking.
The S&P 500 fell 2.97 points, or 0.1%, to 4207.27, while the tech-focused Nasdaq Composite Index lost 74.89 points, or 0.6%, to 12779.91. The Dow Jones Industrial Average rose 27.16 points, or 0.1%, to 33336.67.
All three indexes rose earlier in the day. Producer-price data buoyed investors' hopes that inflation may be easing, potentially slowing the Federal Reserve's pace of interest-rate increases.
ASIAN STOCKS
Japanese stocks were higher, led by gains in tech and electronics stocks, as concerns eased somewhat about U.S. inflation and the Fed's aggressive tightening. SoftBank Group gained 5.0% after its plan to cut its stake in Alibaba Group Holding. Meanwhile, Shiseido fell 2.9% after it cuts fiscal-year revenue and net-profit views. Earnings remained in focus with Recruit Holdings and Dentsu Group scheduled to announce their results later in the day. The Nikkei Stock Average was up 2.1% at 28397.50.
South Korea's Kospi edged 0.1% lower at 2521.48 in mixed early trade. While construction and shipbuilding stocks were higher, gaming and biotech shares lost ground. Institutional and foreign investors were net buyers as the stock benchmark was set to post a fourth straight weekly advance, but profit-taking could offset gains. Hyundai Engineering & Construction rose 3.6% after media reports about a possible South Korea-Saudi Arabia summit on construction projects. Videogame developers NCsoft fell 3.3% after weak 2Q earnings.
Hong Kong's Hang Seng Index was up 0.2% at 20135.93 in early trade. The Index was expected to trade rangebound during the session, said KGI Research analysts in a market commentary. Better-than-expected U.S. inflation data could support equities, although gains may be capped due to rising Treasury yields amid the Federal Reserve's hawkish stance, KGI Research added. Sportswear company Li Ning Co. gained 5.8%, Xiaomi Corp. rose 2.8% and China Mobile was 2.2% higher. SMIC was 1.2% lower after reporting its second-quarter earnings.
Chinese shares were lower in morning trade. The benchmark Shanghai Composite Index declined 0.2% to 3274.44, the Shenzhen Composite inched down 0.1% to 2215.74 and the ChiNext Price Index slipped 0.2% to 2716.84. Coronavirus-related developments would remain closely watched, amid fears that the rising number of infections in the country could spark lockdowns. "As long as China persists with its 'zero-COVID-19' policy, GDP growth will likely remain weak"," said Preston Caldwell, Chair of the China Economics Committee at Morningstar. Tensions between China and Taiwan would also likely remain in focus, following Taiwan President's comments that China's military threat still remains. Auto stocks were lower, with BYD CO. losing 0.8% and SAIC Motor 0.1% lower.
FOREX
Asian currencies consolidated against USD in the morning Asian session, but may strengthen as "Fed pivot" bets grow, analysts said. If the Fed meets market expectations to raise rates by only 50 basis points in September, this will likely mark the peak of its aggressive rate-increase cycle, Tina Teng, markets analyst at CMC Markets, said in an email. However, other central banks may keep pace on tightening, especially the ECB which appears to have just begun its aggressive rate-increase cycle and which may cause further USD weakness, Teng added. USD/KRW fell 0.2% to 1,304.75 while USD/SGD was little changed at 1.3696 and AUD/USD was down 0.1% at 0.7097.
METALS
Gold prices slipped early in the Asian session. Trading in the precious metal could remain rangebound as investors continue to weigh worries over economic growth, while watching for shifts in the Federal Reserve's rate policy, Goldman Sachs analysts said in a note. Spot gold was down 0.1% at $1,787.96/oz.
OIL SUMMARY
Oil prices were a tad lower in early Asia trade. Prices of the commodity were likely to remain supported above the $90.00/bbl level as demand was expected to remain strong amid easing recession fears, Oanda analyst Edward Moya said in a markets commentary. The International Energy Agency expects demand for the commodity to remain strong, and for oil supply to remain tight over the next year, Moya said. The front-month WTI contract was down 0.4% to $93.96/bbl while the front-month contract for Brent crude fell 0.3% to $99.27/bbl.
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(END) Dow Jones Newswires
08-11-22 2315ET
