GLOBAL MARKETS DJIA 33045.09 -84.50 -0.26% Nasdaq 11507.07 14.77 0.13% S&P 500 3991.05 -6.29 -0.16% FTSE 100 7930.63 -47.12 -0.59% Nikkei Stock CLOSED Hang Seng 20403.06 -20.78 -0.10% Kospi 2446.84 29.16 1.21% SGX Nifty* 17682.00 46 0.26% *March contract USD/JPY 134.75-76 -0.13% Range 134.97 134.70 EUR/USD 1.0623-26 +0.17% Range 1.0626 1.0603 CBOT Wheat March $7.364 per bushel Spot Gold $1,825,00/oz Unch Nymex Crude (NY) $73.90 -$2.46 U.S. STOCKS
Worries about rising interest rates sent the S&P 500 to a fourth consecutive session of declines on Wednesday, notching its longest losing streak of the year.
The S&P 500 fell 6.29 points, or 0.2%, to 3991.05. The Dow Jones Industrial Average lost 84.50 points, or 0.3%, to 33045.09.
The Nasdaq Composite slipped in early trading and pared those losses to finish up 14.77 points, or 0.1%, to 11507.07.
"What's really occupying the market's mind now is this resilient growth, which is likely to mean more resilient inflation," said JPMorgan Private Bank.
ASIAN STOCKS
Markets in Japan are closed on Thursday for a holiday.
South Korea's benchmark Kospi gained 0.7% to 2435.45 in early trade. Electronics, shipping and online gaming stocks were higher. The Bank of Korea kept rate unchanged at its policy meeting as was widely expected. Retail and institutional investors were net buyers. USD/KRW rose 0.1% to 1,305.60 after the BOK decision but was last down 0.4%.
Hong Kong's benchmark Hang Seng Index opened 0.4% lower at 20339.15 amid investor worries over the Fed's next moves after a series of stronger-than-expected U.S. economic data. Tech stocks extended their declines and were among the top losers on the HSI. The Hang Sang Tech Index was 0.25% lower. Some consumption companies also weighed on the market, with sport-equipment maker Li Ning down 0.9%. Hong Kong Exchanges & Clearing edged up 0.4% ahead of its earnings results, as the market expects HKEX to report a better 4Q than the past few quarters on a boost to capital markets after China's reopening.
China stocks rose in morning trade, picking up from a muted opening. The benchmark Shanghai Composite Index edged up by 0.3% to 3301.69, while the Shenzhen Composite Index added 0.3% to 2165.81. The ChiNext Price Index gained 0.7% to 2469.54. China Securities analysts said in a note that the market's risk-reward profile likely remained favorable, with undemanding valuations and in view of a reopening-driven earnings recovery trend. While some investors have become worried about softer-than-expected macroeconomic rebound momentum, the brokerage reckoned a more moderate recovery pace could prove an advantage, as overheated markets may trigger regulatory cooling.
FOREX
Most Asian currencies strengthened against the USD in early Asian trade amid mild risk-on sentiment spurred by gains in U.S. stock futures, though their strength may be capped. The FOMC minutes released overnight inclined toward hawkishness, said MUFG Bank. The hawkish Fed stance and positive U.S. data may still favor positioning toward the USD and place downside pressure on regional currencies, it added. USD/KRW fell 0.3% to 1,299.64, USD/SGD edged 0.1% lower to 1.3390 while AUD/USD rose 0.3% to 0.6829.
METALS
Gold prices were flat in early Asian trade, as investors continued to digest minutes from the Fed's latest policy meeting. The precious metal "may trade defensively" in the near term, weighed by rising U.S. Treasury yields and a strengthening USD, said DailyFX. "The increasingly hawkish monetary policy outlook, in concert with the higher-for-longer interest rate scenario, will act as a bullish driver for real yields, reinforcing the U.S. dollar's recovery in financial markets," it added. Spot gold was flat at $1,825,00/oz.
OIL SUMMARY
Oil prices were higher in early Asian trade, recovering from overnight declines against a backdrop of concerns for aggressive interest-rate increases. "Energy traders anticipate a hawkish Fed will contemplate larger rate hikes that will likely send the US economy into a recession," Oanda said. Meanwhile, CBA said that the risk of oil supply disruptions remained on the table in 2023, with Russia set to reduce production next month and potentially more later in the year. Front-month WTI rose 0.2% to $74.09/bbl; front-month Brent gained 0.1% to $80.68/bbl.
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(END) Dow Jones Newswires
02-22-23 2215ET
