GLOBAL MARKETS DJIA 33241.56 37.63 0.11% Nasdaq 10353.23 -144.64 -1.38% S&P 500 3829.25 -15.57 -0.40% FTSE 100 7473.01 3.73 0.05% Nikkei Stock 26290.00 -157.87 -0.60% Hang Seng 20012.19 419.13 2.14% Kospi 2286.72 -46.07 -1.97% SGX Nifty* 18181.00 -103.5 -0.57% *Jan contract USD/JPY 133.89-90 +0.30% Range 133.97 133.38 EUR/USD 1.0640-43 0.00% Range 1.0650 1.0626 CBOT Wheat March $7.744 per bushel Spot Gold $1,810.30/oz -0.2% Nymex Crude (NY) $79.63 $0.07 US STOCKS
U.S. stocks ended mixed after China said it would open its borders next month, bolstering investors' hopes that the thawing of the world's second-largest economy will support global growth.
The S&P 500 was down 0.4%. The tech-focused Nasdaq Composite Index slid 1.4%, while the Dow Jones Industrial Average added 0.1%.
China has maintained some of the world's most-restrictive coronavirus lockdown measures, slowing its economy significantly. Plans to lift Covid-19 quarantine requirements on international arrivals early in January could boost China's economy as travel resumes.
ASIAN STOCKS
Japanese stocks were lower, dragged down by electronics and real-estate stocks, as uncertainty continued over the global economic outlook amid high inflation and policy tightening by central banks. Investors were focusing on bond yields, economic data and their implications for monetary policy. The Nikkei Stock Average was down 0.6% at 26279.87.
South Korea's benchmark Kospi fell 1.9% to 2288.41 in early trade, dragged lower by tech and battery stocks, as well as stocks that pay high dividends--the index was pressured by investors offloading shares on the ex-dividend date. Foreign and institutional investors were net sellers, as the tech-heavy Nasdaq's fall overnight and U.S. electric-vehicle maker Tesla's tumble weighed on sentiment. Dividend stocks, including financial and holding-company stocks, retreated.
Hong Kong stocks were higher in early trade, as the market resumed trading after the Christmas holidays. The benchmark Hang Seng Index gained 1.8% to 19938.69. Consumer goods and services companies led the rise, as the sector's H-shares caught up with recent gains in the onshore market, after Beijing scrapped quarantine requirement for overseas travelers to China. Analysts at brokerage Central China International reckoned the industry's outperformance is likely to be sustained, given its upbeat recovery outlook underpinned by China's reopening. But the overall market may still see fluctuations, given continued pressure from climbing interest rates globally, the brokerage cautioned.
Chinese shares opened lower, as investors moved beyond the news on China's border reopening, which had initially bolstered hopes that the shift in Covid policy would support growth. Unfavorable factors, such as massive Covid outbreaks, a short-term cooling economy and domestic inflation were overshadowing the longer term optimism associated with relaxed border restrictions. Auto makers and retailers weighed on the market. Financials extended their gains and outperformed the market. ?The Shanghai Composite Index dropped 0.2% to 3088.62, the Shenzhen Composite Index was down 0.4% and the ChiNext Price Index fell 0.6%.
FOREX
Asian currencies consolidated against the dollar in the Asian morning session amid liquidity-thinned markets, as many investors and traders are away due to the year-end holidays. Traditionally, the last week of the year is one of the lightest regarding scheduled data and events, and "almost everyone is becoming one with their couch," said Stephen Innes, managing partner of SPI Asset Management, in an email. USD/SGD was little changed at 1.3466, while USD/KRW fell 0.2% to 1,269.86 and AUD/USD was up 0.2% at 0.6743.
METALS
Gold edged lower in the Asian morning session amid a slightly stronger dollar, but losses may be limited by the prospects of safe-haven demand, analysts said. There is some cautiousness over the swift pace of China's reopening, particularly when Covid-19 infections are expected to reach a fresh peak in January, OCBC Treasury Research said in a research report. Also, a scenario of fresh Covid-19 waves in other countries or a new variant could undermine sentiment, according to the research report. Spot gold was down 0.2% at $1,810.30/oz.
OIL SUMMARY
Oil edged higher in the Asian morning session, supported by China's plan to reopen its borders to international travel for the first time in almost three years, boosting expectations of stronger demand from the world's second-largest economy, analysts said. It is a major step toward easing curbs on its borders, Avtar Sandu, senior commodities manager at Phillip Nova, said in an email. Front-month WTI crude oil futures were 0.2% higher at $79.69/bbl; front-month Brent crude oil futures were 0.2% higher at $84.50/bbl.
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(END) Dow Jones Newswires
12-27-22 2215ET
