GLOBAL MARKETS DJIA* 33147.25 -73.55 -0.22% Nasdaq* 10466.48 -11.61 -0.11% S&P 500* 3839.50 -9.78 -0.25% FTSE 100* 7451.74 -60.98 -0.81% Nikkei Stock Closed Hang Seng 19614.97 -166.44 -0.84% Kospi 2188.87 -36.80 -1.65% SGX Nifty# 18170.50 -52.5 -0.29% #Jan contract USD/JPY 129.90-91 -0.64% Range 131.37 129.81 EUR/USD 1.0670-73 +0.04% Range 1.0685 1.0651 CBOT Wheat March $7.920 per bushel Spot Gold $1,830.70/oz 0.4% Nymex Crude (NY) $80.42 $2.02 *Markets in the U.S. and U.K. were closed Monday for the New Year's holiday. US STOCKS
U.S. stocks retreated in the final trading session of 2022 last Friday, as major indexes closed out a punishing year with further losses.
The S&P 500 fell 0.3% while the Dow Jones Industrial Average lost 0.2%. The Nasdaq Composite Index declined 0.1%. All three benchmarks pared deeper losses from earlier in the day.
Many traders had hoped the stock market would end the year on a high note, as part of what is colloquially known as the "Santa Claus rally." U.S. stocks tend to rise during the period, averaging since 1950 a 1.3% gain during the last five trading sessions of the year and first two of the new year. So far, the benchmark index has risen about 0.7% through the first four days of the period.
ASIAN STOCKS
South Korea's benchmark Kospi fell 0.8% to 2208.17 in early trade, dragged lower by energy and travel stocks. Airline and tourism companies fell as local health authorities Monday began imposing mandatory Covid tests on travelers from China. Foreign and institutional investors led the retreat. USD/KRW was 0.1% higher at 1,273.60.
Hong Kong shares opened lower in the first trading session of 2023 as market optimism was damped by a significant jump in Covid infections in China. The Hang Seng Index dropped 1.1% to 19570.43, with declines led by consumption-related companies and tech giants. The Hang Seng Tech Index fell 1.2%. Property stocks pared back gains in recent months as the Hang Seng Mainland Properties Index declined 2.6%.
Chinese shares opened broadly lower, as the country's abrupt reopening has driven a massive spike in Covid-19 infections and taken a toll on the economy. China's worse-than-expected December PMI data hit its lowest level since February 2020, leading Barclays economists believe "growth likely bottomed in Q4 and should gradually recover in H1." Financials and auto-related industry weighed on the market. Among the gainers were chip makers and telecoms. The Shanghai Composite Index dropped 0.1% to 3087.51. The ChiNext Price Index fell 0.3%, while the Shenzhen Composite opened flat.
Japanese markets are closed today.
FOREX
JPY strengthened against other G-10 and Asian currencies in the morning Asian session. Risk-off sentiment has been spurred by losses in regional equity markets and other negative developments such as a top Chinese public-health official warning of Covid-19 outbreaks across the country's more vulnerable rural areas, analysts said. Also, the upcoming U.S. corporate earnings seasons could present a challenge for risk sentiment, said Yeap Jun Rong, a market analyst at IG, in an email. USD/JPY fell 0.5% to 130.15, AUD/JPY slipped 0.8% to 88.25 and EUR/JPY was down 0.6% at 138.71.
METALS
Gold was higher in the early Asian session amid positive technical factors, analysts said. Prices continue to trade upward within a rising wedge chart pattern, said Daniel Dubrovsky, senior strategist at DailyFX.com, in a technical analysis note. Although this pattern is usually bearish, gold prices are still trading within the wedge, suggesting the near-term path for gold prices could remain tilted slightly upward, he added. Spot gold was recently 0.4% higher at $1,830.70/oz.
OIL SUMMARY
Oil fell on concerns over China's economic growth after data released over the weekend showed the country's December manufacturing PMI was weaker than expected. Given the data, this would suggest a more sluggish reopening for China and could trim some of the pre-New Year gains from the current oil rally, said Stephen Innes, managing partner of SPI Asset Management, in an email. Front-month WTI crude oil futures were 0.5% lower at $79.83/bbl; front-month Brent crude oil futures were 0.7% lower at $85.34/bbl.
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(END) Dow Jones Newswires
01-02-23 2215ET
