GLOBAL MARKETS DJIA 32223.42 26.76 0.08% Nasdaq 11662.79 -142.21 -1.20% S&P 500 4008.01 -15.88 -0.39% FTSE 100 7464.80 46.65 0.63% Nikkei Stock 26672.93 125.88 0.47% Hang Seng 20320.30 370.09 1.86% Kospi 2616.18 19.60 0.75% SGX Nifty* 15871.50 28.0 0.18% *May contract USD/JPY 129.21-22 +0.06% Range 129.36 128.84 EUR/USD 1.0438-41 +0.07% Range 1.0454 1.0429 CBOT Wheat July $12.474 per bushel Spot Gold $1,827.54/oz 0.2% Nymex Crude (NY) $114.01 $3.52 US STOCKS
U.S. stocks finished mostly lower as the selloff in shares extended into another week.
The Dow Jones Industrial Average rose 0.1%, while the S&P 500 fell 0.4% and the technology-heavy Nasdaq Composite Index dropped 1.2%.
The S&P 500 has dropped for six consecutive weeks, its longest weekly losing streak since June 2011, even after posting gains on Friday.
Investors, worried that the Federal Reserve has been too late to spot the risks from soaring inflation, fear the central bank will move too aggressively to fight it, a mistake that could tip the economy into a recession.
The resulting selloff, which has been compounded by the war in Ukraine and Covid-19 lockdowns in China, has been broad, affecting most assets from cryptocurrencies and stocks to government bonds, leaving investors unsure of where to seek safety.
Investors are grappling with so many issues-the Russia-Ukraine war, Federal Reserve policy, inflation, China's economic slowdown-it is hard for them to justify holding any assets for too long, said City Index market analyst Fawad Razaqzada. Most fundamentally, he said, investor confidence has been badly shaken by the selloff.
ASIAN STOCKS
Japanese stocks were up in early trade, led by gains in energy and shipping companies, as the economic recovery from the Covid-19 pandemic helps boost demand for energy and shipping. Investors were focusing on the movement of oil prices and the yen as the earnings season winds down. The Nikkei Stock Average was up 0.2% at 26595.78.
South Korea's Kospi rose 0.6% to 2612.80 in early trade, led by construction and chemical stocks. Investor sentiment was being supported by easing concerns about China's pandemic-hit economy, as Chinese financial hub Shanghai seeks to end Covid-19 lockdowns and return to normalcy from June 1.
Hong Kong's Hang Seng Index rose 2.1% to 20363.71 in morning trade, tracking gains in regional equities markets. The local stock market may range-trade today, KGI Research said in morning commentary, noting that economic data out of China released Monday missed expectations, although Shanghai has announced that it will resume normal life from June 1 following Covid restrictions. The Hang Seng TECH Index was up 3.5% at 4179.49.
Chinese stocks were mixed in early trade, as investors continued to digest recent weak April economic data. "Fresh economic data out of China yesterday painted a worse-than-expected situation from the impact of Covid-19 lockdowns," IG market strategist Yeap Jun Rong said in a note. The Shanghai Composite Index was 0.9% lower at 3072.07, the Shenzhen Composite Index declined 0.4% to 1918.55, while the ChiNext Price Index was up 0.7% at 2347.33. Coronavirus-related developments will remain in focus, after Shanghai authorities said Monday they would begin reopening gradually as of June 1 if progress toward controlling the Omicron outbreak is maintained.
FOREX
Most Asian currencies strengthened against USD in the morning session on hopes for economic-stimulus measures from China. There is a good possibility that Chinese policy makers could use Monday's weak economic data as a "watershed moment" to deliver "flood-like" stimulus once the economy reopens, said SPI Asset Management managing partner Stephen Innes in an email. USD/KRW fell 0.3% to 1,277.16 and USD/SGD dropped 0.2% to 1.3887 while AUD/USD rose 0.6% to 0.7008.
METALS
Gold edged higher in the early morning Asian session amid stabilizing USD and Treasury yields. While the Fed seems on course to carry out two 50bp rate increases at its next two meetings, should this scenario not be upgraded, gold could show further signs of stabilization, Oanda senior market analyst Edward Moya said in an email. The metal should find tentative resistance at the $1,835/oz level, with $1,750/oz being the key support if the $1,800/oz level breaks, the analyst added. Spot gold was up 0.2% at $1,827.54/oz.
OIL SUMMARY
Oil prices were mixed in the Asian morning session, but may rise amid hopes for Chinese demand, analysts said. There are expectations that Chinese demand may return amid Russian supply concerns, SPI Asset Management managing partner Stephen Innes said in an email. Also, Shanghai has announced its gradual reopening and aims to return to everyday life by June 1, so mobility should return to normalcy, Innes adds. Front-month WTI crude oil futures were 0.1% lower at $114.10/bbl; front-month Brent was little changed at $114.28/bbl.
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(END) Dow Jones Newswires
05-16-22 2315ET
