GLOBAL MARKETS DJIA 32930.08 -339.69 -1.02% Nasdaq 10305.24 -153.52 -1.47% S&P 500 3808.10 -44.87 -1.16% FTSE 100 7633.45 48.26 0.64% Nikkei Stock 25941.92 121.12 0.47% Hang Seng 21024.10 -28.07 -0.13% Kospi 2283.29 18.64 0.82% SGX Nifty* 18057.00 -8 -0.04% *Jan contract USD/JPY 133.63-64 +0.17% Range 133.83 133.29 EUR/USD 1.0526-29 +0.05% Range 1.0537 1.0520 CBOT Wheat March $7.466 per bushel Spot Gold $1,832.70/oz Unch Nymex Crude (NY) $73.71 $0.87 U.S. STOCKS
U.S. stocks fell Thursday, after strong labor-market data bolstered the case for the Federal Reserve to remain tough.
The S&P 500 dropped 44.87 points or 1.2% to 3808.10. The Dow Jones Industrial Average declined 339.69 points, or 1%, to 32930.08. The Nasdaq Composite fell 153.52 points, or 1.5%, to 10305.24. All the indexes had notched gains on Wednesday.
U.S. weekly jobless claims fell by 19,000 to 204,000 in the final week of 2022. Economists surveyed by The Wall Street Journal had expected 223,000 claims. Meanwhile, ADP data showed private-sector hiring accelerated in December.
Both readouts suggest the labor market remains resilient despite interest-rate increases, and come a day ahead of the keenly watched monthly jobs report. A strong labor market has been a source of concern for Fed officials as they attempt to cool inflation.
ASIAN STOCKS
Japanese stocks were slightly lower in early trade, dragged by falls in electronics and real-estate stocks, as concerns continue about the Fed's further tightening following strong U.S. economic data overnight. Investors were focusing on economic data, including U.S. jobs data due later in the day, and their implications for monetary policy. The Nikkei Stock Average was down 0.1% at 25790.54.
South Korea's benchmark Kospi edged 0.2% higher to 2269.44 in early mixed trade. Semiconductor and retail stocks gained while shipbuilding and travel shares were lower. Index heavyweight Samsung Electronics was up 0.2%, paring gains earlier in the session after its below-consensus 4Q preliminary earnings results that investors have already priced in. The tech giant expects its 4Q operating profit to fall 69% on year. Memory-chip maker SK Hynix added 1.8%, extending gains to a third straight session after the government's tax-break plan for semiconductor companies.
Hong Kong stocks rose in early trade, sustaining their bullish start into 2023. The benchmark Hang Seng Index was up 0.5% at 21150.53, further advancing from a multi-month high close on Thursday. Chinese property developers and real estate management companies led the gains, after officials unveiled more policy support for the struggling industry. New energy stocks further supported. While the HSI has gained substantial ground in recent weeks, Orient Securities analysts reckoned the market's recovery trend was "far from over," thanks to higher rates expected, which could strengthen the yuan and improve Hong Kong equities' attractiveness to international investors.
Mainland Chinese shares were broadly flat at the open. However, property stocks continued to extend their gains after the country's central bank said Thursday that it would continue to let some local governments lower or remove the floor of mortgage rates for first-home buyers. Consumption-related companies and pharmaceutical companies were weighing on the market. The Shanghai Composite Index and Shenzhen Composite Index were both flat while the ChiNext Price Index was 0.3% lower.
FOREX
Asian currencies consolidated against the USD in early Asian trade ahead of the U.S. nonfarm payrolls report due out later today. Risk sentiment might tilt more toward wait-and-see in the run-up to this report, said Yeap Jun Rong, market analyst at IG, in an email. Any outperformance in wage pressures could be a catalyst to add to recent market jitters, the analyst added. USD/KRW fell 0.3% to 1,270.50 while USD/SGD was little changed at 1.3446 and AUD/USD edged 0.1% higher to 0.6758.
METALS
Gold consolidated in the early Asian trade but was likely to be weighed by renewed prospects for Fed tightening, analysts said. The precious metal seems to be struggling as the latest round of U.S. economic data suggests the Fed will have lots of pressure on it to tighten further, Oanda said. Gold prices could stay stuck above the $1,800/oz level, it added. Spot gold was little changed at $1,832.70/oz.
OIL SUMMARY
Oil was higher in the early Asian session. Oil prices have been supported by a more "petite" inventory build than expected, said SPI Asset Management. The Energy Information Administration reported overnight that crude inventories rose by 1.7 million barrels for the week ended Dec. 30. That compared with analysts' average forecast for an increase of 4.5 million barrels, according to a poll by S&P Global Commodity Insights. Front-month WTI crude oil futures were 0.9% higher at $74.36/bbl and Brent crude oil futures were up 0.8% at $79.33/bbl.
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(END) Dow Jones Newswires
01-05-23 2215ET
