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GLOBAL MARKETS DJIA 33684.79 98.27 0.29% Nasdaq 12031.88 -52.48 -0.43% S&P 500 4108.94 -0.17 0.00% FTSE 100 7785.72 44.16 0.57% Nikkei Stock 28073.76 150.39 0.54% Hang Seng 20319.92 -165.32 -0.81% Kospi 2543.09 -4.77 -0.19% SGX Nifty* 17795.00 8 0.04% *Apr contract USD/JPY 133.89-90 +0.14% Range 133.90 133.55 EUR/USD 1.0920-23 +0.07% Range 1.0932 1.0911 CBOT Wheat May $6.740 per bushel Spot Gold $2,005.18/oz 0.1% Nymex Crude (NY) $81.40 $1.66 US STOCKS
Shares of smaller companies and those in cyclical industries like materials and energy that are less sensitive to interest rates edged higher in a quiet session ahead of the latest U.S. inflation data later this week.
The S&P 500 closed flat, while the Russell 2000 index rose 0.8%, the second consecutive session that shares of smaller companies have outperformed those of larger firms, which are typically more affected by interest rates.
The Dow Jones Industrial Average added 0.3%. The Nasdaq Composite fell 0.4%.
Investors remain focused on interest rates ahead of the Fed's meeting that will conclude May 3. After last week's strong labor-market data, traders are increasingly wagering that the central bank is likely to raise rates by a further quarter of a percentage point, according to CME Group.
"We're in a nothing market until either the Fed blinks or the market blinks," said Matthew Tuttle, chief executive of Tuttle Capital Management.
ASIAN STOCKS
Japanese stocks were higher, led by gains in trading houses and shipping stocks, as the yen weakened and the prospects have lessened for policy tightening by the Fed and other central banks. USD/JPY was at 133.69, up from 133.26 as of Tuesday's Tokyo stock market close. Investors are focusing on economic data, including U.S. consumer inflation due later in the day, for their policy implications. The Nikkei Stock Average was up 0.4% at 28039.06.
South Korea's benchmark Kospi was 0.4% higher at 2557.95 in early trade as auto stocks advanced. Investor sentiment was supported by expectations that the Bank of Korea's policy tightening cycle may be coming to an end after it paused its rate increases for a second time in April. But profit taking after a three-session winning streak and caution ahead of fresh U.S. inflation data limited the upbeat mood.
Hong Kong shares were lower in morning trade, pulling back from Tuesday's gains. The benchmark Hang Seng Index was down 0.5% at 20388.00. A mixed bag of sectors were weaker. But Founder Securities analysts reckoned the market's risk-reward profile remains attractive, given H-shares' valuations are at historical lows. "The recovery momentum is likely still ongoing," they said.
Chinese shares were mixed in early trade. Data released Monday showed CPI eased in March, indicating that the post-Covid recovery momentum remains weak, while also raising the likelihood of a rate cut by the PBOC, analysts said. The Shanghai Composite Index was up 0.1% at 3316.86. The Shenzhen Composite Index was flat and the ChiNext Price Index was down 0.1%.
FOREX
Asian currencies consolidated against the USD in early Asian trade ahead of U.S. CPI data due later today. Any higher-than-expected inflation reading could pave the way for another 25bp rate increase by the Fed, with the hawkish recalibration in rate expectations likely to lead to a stronger USD, said Yeap Jun Rong, market analyst at IG, in an email. USD/KRW edged 0.1% higher to 1,323.75 while USD/SGD shed 0.1% to 1.3320 and AUD/USD was up 0.1% at 0.6662.
METALS
Gold edged higher in the early Asian session ahead of U.S. CPI data due later in the global day. A weaker USD and returning investment flows have been supporting gold prices, ANZ Research analysts said in a research report. The CPI data along with U.S. retail sales due out later this week will likely be important for a further upside move in the precious metal, the analysts added. Spot gold was up 0.1% at $2,005.18/oz.
OIL SUMMARY
Oil futures were mixed in the early morning Asian session but face a possible technical correction after front-month WTI crude settled at its highest level since January overnight and front-month Brent at the highest in about five weeks. Still, the oil market is likely going to stay tight and, while China's reopening has underwhelmed, it will do a lot better going forward, which should support crude prices, Edward Moya, senior market analyst at Oanda, said in an email. Front-month WTI futures were 0.1% lower at $81.48/bbl; front-month Brent was steady at $85.60/bbl.
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(END) Dow Jones Newswires
04-11-23 2317ET
