GLOBAL MARKETS DJIA 33891.02 -34.99 -0.10% Nasdaq 11887.45 -119.50 -1.00% S&P 500 4111.08 -25.40 -0.61% FTSE 100 7836.71 -65.09 -0.82% Nikkei Stock 27759.55 65.90 0.24% Hang Seng 21448.04 225.88 1.06% Kospi 2453.92 15.73 0.65% SGX Nifty* 17856.00 +95.0 0.53% *Feb contract USD/JPY 132.32-33 -0.24% Range 132.72 132.24 EUR/USD 1.0738-41 +0.13% Range 1.0745 1.0724 CBOT Wheat March $7.502 per bushel Spot Gold $1,870.18/oz 0.2% Nymex Crude (NY) $74.39 $1.00 US STOCKS
U.S. stocks fell, continuing their decline after strong jobs data last week raised the prospect of more interest-rate increases by the Federal Reserve.
The S&P 500 fell 0.6%. The Dow Jones Industrial Average dropped about 0.1%, while the technology-heavy Nasdaq Composite Index declined 1%.
"The selloff in the last couple of days might be some realization, particularly on the rates side of things, that the markets got carried away," said Edward Smith, co-chief investment officer at Rathbones. Given how rapidly prices have been rising, Smith added, "We've got a long way to go. That's going to keep the Fed from delivering those rate cuts."
Fed Chairman Jerome Powell is due to give an interview Tuesday. Investors will trawl his remarks for clues about the central bank's response to the job numbers.
ASIAN STOCKS
Japanese stocks were higher in early trade, led by gains in financial stocks, as expectations continued for the Fed's further rate increases on the back of economic strength. The Nikkei Stock Average was up 0.3% at 27778.06.
South Korea's benchmark Kospi was 0.2% higher at 2442.06 in early mixed trade. Financial and shipbuilding stocks fell, while electronics and battery shares were higher. Investors largely remained cautious ahead of the U.S. Federal Reserve Chairman Powell's speech later in the global day. USD/KRW gained 0.7% to 1,261.50 as the prospect of more interest-rate increases by the Fed weighed on investor sentiment.
Hong Kong's benchmark Hang Seng Index rose 0.6% to 21348.16 in early trade on a brighter outlook for listings on the bourse. Hong Kong's Chief Executive John Lee is currently visiting Saudi Arabia and is expected to discuss the possibility of listing Saudi Aramco in the HSI, KGI Securities analysts said in a note. If the listing is approved, it would be a good sign for IPOs on the HSI for the year ahead, they added. Gains were broad-based.
Chinese shares were higher in early trade, reversing Monday's losses, as sentiment was buoyed by expectations of a supportive monetary policy stance from Beijing, offsetting a negative lead from the U.S. overnight. "In China, we expect the increase in consumer inflation this year to remain moderate and don't think the People's Bank of China will raise its policy rate this year," said Louis Kuijs, an economist at S&P Global Research. Property stocks were outperforming after the city of Wuhan further loosened curbs on real-estate purchases. The Shanghai Composite Index was 0.2% higher at 3245.41. The Shenzhen Composite Index gained 0.2% and the ChiNext Price Index was 0.3% higher.
FOREX
Most Asian currencies strengthened against the dollar in the morning session on risk appetite spurred by gains across most regional equity markets. However, Asia FX strength may be curbed ahead of Fed Chair Jerome Powell's speech at the Economic Club of Washington later today. Markets will be alert and sensitive to the Fed's policy bias, said Philip Wee, senior FX strategist at DBS Group Research, in an email. The Fed's priority appears to be to push back against the market's rate-cut bets and express the need for additional tightening before holding rates restrictive for some time, Wee added. USD/KRW fell 0.6% to 1,253.90 and USD/SGD edged 0.1% lower to 1.3261, while AUD/USD rose 0.3% to 0.6904.
METALS
Gold edged higher in the early morning Asian session, buoyed by safe-haven demand. Rising geopolitical tensions have spurred this demand, said ANZ Research analysts in a research note. U.S.-China tensions have risen after the U.S. recently shot down a suspected Chinese spy balloon over U.S. territory, the analysts added. Spot gold was up 0.2% at $1,870.18/oz.
OIL SUMMARY
Oil rose in the Asian morning session on supply concerns spurred by earthquakes that struck Turkey and northern Syria. The earthquakes forced shutdowns at a Turkish oil terminal, which has implications for Iraqi oil along with Syria's primary oil refinery. Operations at Turkey's oil terminal in Ceyhan stopped after an earthquake struck nearby on Monday, according to an official at Tribeca Shipping, a shipping-services provider that assists vessels going to Ceyhan. Front-month WTI crude oil futures were 0.9% higher at $74.75/bbl; front-month Brent crude oil futures were 0.8% higher at $81.63/bbl.
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(END) Dow Jones Newswires
02-06-23 2215ET
