GLOBAL MARKETS DJIA 32120.28 191.66 0.60% Nasdaq 11434.74 170.29 1.51% S&P 500 3978.73 37.25 0.95% FTSE 100 7522.75 38.40 0.51% Nikkei Stock 26641.95 -35.85 -0.13% Hang Seng 19951.40 -219.87 -1.09% Kospi 2623.75 6.53 0.25% SGX Nifty* 16079.00 56.5 0.35% *June contract USD/JPY 127.37-38 +0.08% Range 127.58 127.12 EUR/USD 1.0700-03 +0.20% Range 1.0708 1.0679 CBOT Wheat July $11.482 per bushel Spot Gold $1,853.62/oz 0.1% Nymex Crude (NY) $110.67 $0.90 US STOCKS
U.S. stock ended higher as investors studied the release of minutes from the Federal Reserve's most recent policy meeting for details on the path of coming interest-rate rises.
The S&P 500 was up 1% while the Nasdaq Composite Index rose 1.5%, a reversal from a sharp selloff in tech stocks the day before. The Dow Jones Industrial Average climbed 0.6%.
Consumer-discretionary stocks paced the S&P 500's gain, rising 2.8%. Several retail companies, including Nordstrom and Express, raised their 2022 forecasts, while others such as Dick's Sporting Goods indicated business wasn't getting worse. Minutes from the Federal Reserve meeting earlier this month provided more signals for investors about policymakers' outlooks on the economy and inflation.
ASIAN STOCKS
Japan's Nikkei Stock Average was up 0.5% at 26820.49, led by gains in auto, railway and real-estate stocks, as government bond markets stabilize in recent sessions, despite uncertainty over higher costs of operations. Investors were focusing on movements of bond yields, crude prices and the yen.
South Korea's Kospi rose 0.6% to 2633.61 ahead of the Bank of Korea's rate decision later in the day. Gaming, shipbuilding and tech stocks were leading the gains in early trade, on bargain-hunting after recent falls. Investors largely expected the BOK to raise the policy rate by 25 basis points again, following the same-sized rate increase in April to keep up the fight against inflation. South Korea's central bank later raised its benchmark interest rate by 25 basis points to 1.75%, and signaled it would tighten policy further as it keeps up its fight against high inflation.
Hong Kong's Hang Seng Index fell 0.4% to 20095.48, reversing its opening gains amid mixed signals. While the latest FOMC meeting minutes signaled that the Fed won't tighten policy too aggressively, a recent China State Council meeting didn't unveil any new major policies, KGI Research in a morning commentary, adding it expects the local equity market to range-trade. The Hang Seng TECH Index was down 0.9% at 4007.15.
Chinese shares were mixed in early trade after opening higher, amid continued concerns over the country's zero-Covid policy. The Shanghai Composite Index was flat at 3107.40, the Shenzhen Composite Index fell 0.2% to 1941.60 and the ChiNext Price Index edged 0.1% lower to 2323.83. China's tech sector will likely be in focus ahead of key earnings results from Alibaba and Baidu due later today, IG market analyst Yeap Jun Rong said in a note. Earnings will likely echo Tencent's recent results on slower sales growth, he added. Energy stocks were mixed.
FOREX
Asian currencies consolidated against the U.S. dollar as markets assess the Fed's policy outlook following the release of FOMC meeting minutes. With inflation risks skewed to the upside, markets are pricing in the Fed's policy rate to finish the year at 2.75%, although only with a 58.9% probability, said Matt Simpson, senior market analyst at City Index. "We're all questioning as to whether the Fed really can tame eye-watering levels of inflation without triggering a hard landing." USD/KRW was steady at 1,266.60, USD/SGD was little changed at 1.3753 and AUD/USD was down 0.1% at 0.7081.
METALS
Gold prices were higher in early Asian trade, after booking their worst fall in two weeks overnight. The precious metal was partially supported by the Federal Reserve minutes, which showed little appetite for more aggressive rate increases, ANZ analysts said in a note. "The technical picture continues to remain supportive, and it seems only a marked U.S. Dollar recovery will cap gold's rally," Oanda analyst Jeffrey Halley said in a note. Spot gold was 0.1% higher at $1,853.62/oz.
OIL SUMMARY
Oil prices were higher in early Asian trade, after data showed a decline in U.S. crude and gasoline inventories ahead of the upcoming summer driving season. Brent oil futures could track around $110 a barrel in the near term, CBA analyst Vivek Dhar said in a note, adding that an EU ban on Russian oil imports would likely be the main driver. A deal may be formalized in the coming week, though Hungary appears to be the main hold-out amongst EU members, he added. Front-month WTI crude oil futures and Brent each rose 0.6% to $110.95/bbl and $114.69/bbl, respectively.
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(END) Dow Jones Newswires
05-25-22 2315ET
