GLOBAL MARKETS DJIA 33978.08 28.67 0.08% Nasdaq 11621.71 109.30 0.95% S&P 500 4070.56 10.13 0.25% FTSE 100 7765.15 4.04 0.05% Nikkei Stock 27462.58 80.02 0.29% Hang Seng 22474.97 -213.93 -0.94% Kospi 2463.67 -20.35 -0.82% SGX Nifty* 17716.00 26.5 0.15% *Feb contract USD/JPY 130.07-08 +0.17% Range 130.29 129.67 EUR/USD 1.0868-71 +0.01% Range 1.0878 1.0861 CBOT Wheat March $7.500 per bushel Spot Gold $1,925.30/oz -0.21% Nymex Crude (NY) $79.39 -$1.62 U.S. STOCKS
U.S. stocks rose Friday and notched strong weekly gains, boosted by hopes that inflation is moderating.
The S&P 500 rose 10.13 points, or 0.2%, to 4070.56. The Nasdaq Composite added 109.30 points, or 0.9%, to 11621.71. The Dow Jones Industrial Average gained 28.67 points, or 0.1%, to 33978.08.
All three major U.S. indexes posted gains for the week. The S&P 500 added 2.5%, while the Dow gained 1.8%. The Nasdaq jumped 4.3%, notching a fourth week of wins that has driven it higher by 11%, the largest such gain since August.
The Fed is expected to raise interest rates at a milder pace when its policy makers meet this week. Expectations for less-aggressive rate rises have helped push stocks higher, with the S&P 500 up 6% so far this year.
ASIAN STOCKS
The Nikkei Stock Average was up 0.3% at 27467.59 as gains in electronics and chemical stocks helped offset losses in financial stocks. Fanuc was up 4.2% after it lifts its fiscal-year revenue and net-profit expectations. Meanwhile, Tokio Marine Holdings was down 1.4% and Sumitomo Mitsui Financial Group was 1.2% lower. Investors were focusing on bond yields, the yen as well as corporate earnings. Shionogi and Canon Inc. are scheduled to report their results later in the day.
South Korea's benchmark Kospi edged 0.2% lower at 2479.51 in early mixed trade. Chemical and defense stocks advanced while financial and retail shares retreat. Trading volume was thin. Investors were largely refraining from making big bets ahead of the policy meetings by the U.S. Federal Reserve and the European Central Bank later in the week. Foreign and retail investors were net buyers while institutional investors were net sellers. USD/KRW was 0.1% lower at 1,229.90.
Hong Kong stocks were lower in early trade, easing from a rally late last week, when the market resumed trading after the Lunar New Year break. The benchmark Hang Seng Index shed 0.5% to 22572.52. Galaxy Securities analysts reckoned H-shares could enjoy a good run in the coming months. They noted that international investors' sentiment over China and Hong Kong equities has been tracking up, while corporate earnings in 1Q could also get a boost from continued economic activity resumption amid relaxed Covid curbs. The brokerage sees potential outperformance by the mass-consumption sector.
Mainland China shares began the Year Of The Rabbit higher as trading resumed after the Lunar New Year break. "Foreign funds has become the major incremental capital flowing into the mainland stock market, and we believe this trend is likely to continue in the first half of 2023," said China Fortune Securities. The market was likely to remain bullish, it added. Most stocks are higher with auto makers and software companies outperforming. The benchmark Shanghai Composite index rose 1.3% to 3308.87, the Shenzhen Composite Index was up 1.7% and the ChiNext Price Index was 2.8% higher.
FOREX
JPY weakened against G-10 and Asian currencies in the morning session amid risk-on sentiment driven by gains in U.S. equity markets Friday. "Life is good in markets and the flow in risk assets suggests the path of least resistance is higher," Chris Weston, head of research at Pepperstone, said. "For now, we look at the data flow and see a market that senses a positive outcome for risk assets and where pullbacks should be shallow," he added. USD/JPY rose 0.3% to 130.17, AUD/JPY climbed 0.5% to 92.62 and EUR/JPY was up 0.3% at 141.45.
METALS
Gold futures finished slightly lower on Friday, but tallied a sixth weekly gain in a row after touching their highest level in nine months earlier this week, as the latest reading on U.S. inflation met with most market expectations. "Gold has had a good run in the last few weeks benefitting from the downturn in the U.S. dollar," Colin Cieszynski, chief market strategist at SIA Wealth Management said.
OIL SUMMARY
Risks to global oil supply from reported drone strikes in Iran seem relatively limited for now, said Goldman Sachs analysts, citing a WSJ report of the strikes. Iran's oil production facilities are mainly in the south-west of the country and weren't targeted in the current strikes, the analysts said. Also, the strong political focus in the West on avoiding high energy prices probably makes such attacks highly unlikely, the analysts said. In addition, Iran was a marginal global crude exporter currently, and any substantial disruption could be offset by newly-created OPEC spare capacity, they added. Front-month WTI crude oil futures were 0.3% higher at $79.92/bbl; Brent crude oil futures were 0.2% higher at $86.86/bbl.
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(END) Dow Jones Newswires
01-29-23 2216ET
