GLOBAL MARKETS DJIA 34156.69 265.67 0.78% Nasdaq 12113.79 226.34 1.90% S&P 500 4164.00 52.92 1.29% FTSE 100 7864.71 28.00 0.36% Nikkei Stock 27531.52 -153.95 -0.56% Hang Seng 21234.17 -64.53 -0.30% Kospi 2480.15 28.44 1.16% SGX Nifty* 17798.50 68.5 0.39% *Feb contract USD/JPY 131.22-23 +0.11% Range 131.38 130.73 EUR/USD 1.0730-33 +0.02% Range 1.0738 1.0724 CBOT Wheat March $7.496 per bushel Spot Gold $1,874.06/oz 0.1% Nymex Crude (NY) $77.39 $3.28 US STOCKS
U.S. stocks finished higher as traders reacted Federal Reserve Chairman Jerome Powell's first remarks since the job market's surprisingly strong showing Friday.
The S&P 500 rose 1.3% and the Nasdaq Composite Index added 1.9%. The Dow Jones Industrial Average rose 0.8%. Stocks gained ground shortly after Powell began speaking. But a flurry of selling then sent indexes back into the red, although stocks regained positive territory later in the afternoon.
"I really thought his messaging was shockingly consistent with what he said last week," said David Bahnsen, chief investment officer at The Bahnsen Group. "The market move is clearly and obviously related to people who tried to front-run his remarks having to cover their positions."
ASIAN STOCKS
Japanese stocks were lower in early trade, dragged down by several companies posting disappointing results, and as uncertainty continued over the U.S. and Japanese monetary policy outlook. Earnings were in focus. Car maker Subaru and Fujifilm Holdings are both set to announce their results later in the day. The Nikkei Stock Average was down 0.8% at 27468.33.
South Korea's benchmark Kospi rose 0.8% to 2471.38 in early trade, tracking Wall Street's gains overnight after Fed Chairman Powell's remarks on the strong U.S. jobs market. Electronics, internet and online game stocks were leading the Kospi's advance, following a rally in U.S. tech companies.
Hong Kong's Hang Seng Index rose 0.7% to 21438.06 in early trade, tracking Wall Street's overnight gains after a speech by U.S. Fed Chairman Powell. Wall Street stocks headed higher after Powell that inflation has started to ease, although he continued to expect rate hikes. The rally in stocks suggests that investors think the Fed is nearing the end of its rate increases, said CMC Markets strategist Tina Teng in a note.
Chinese shares were higher in early trading, taking a cue from Wall Street overnight, after Federal Reserve Chairman Jerome Powell fueled traders' hopes the Fed might be approaching the end of its aggressive interest-rate increases. Insurance companies and chip makers led gains. Software companies and telecoms weighed on the market. The Shanghai Composite Index was up 0.1% at 3251.50, with the Shenzhen Composite Index and the ChiNext Price Index also 0.1% higher.
FOREX
Asian currencies consolidated against the USD in the morning session, but may be supported by a mild risk-on mood. Sentiment appears to be risk-on as Fed Chair Powell's allusion to "further hikes" was overlooked in favor of "dis-inflationary process," said Vishnu Varathan, head of Economics & Strategy of Asia & Oceania Treasury Department at Mizuho Bank, in an email. USD/KRW was little changed at 1,255.36, USD/SGD was steady at 1.3248 while AUD/USD was flat at 0.6958.
METALS
Gold edged higher in early Asian trade but gains were likely to be limited. Gold prices rose after Fed Chair Powell refrained from pushing back against expectations the Fed would ease monetary policy this year, said Edward Moya, senior market analyst at Oanda. However, risks of two or three more rate increases remain on the horizon, which should keep gold prices somewhat grounded, Moya added. Spot gold was up 0.1% at $1,874.06/oz.
OIL SUMMARY
Oil consolidated in the Asian morning session, but prices were likely to be supported by Saudi Aramco's unexpected price increase. The producer raised most prices for its flagship Arab Light grade, defying expectations of a cut, ANZ Research analysts said in a research report. Aramco also signaled it is expecting demand to strengthen, especially in China, which is reopening after years of Covid-19-related restrictions, the analysts added. Front-month WTI crude oil futures were 0.1% higher at $77.21/bbl; front-month Brent crude oil futures were little changed at $83.67/bbl.
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(END) Dow Jones Newswires
02-07-23 2215ET
