GLOBAL MARKETS DJIA 32244.58 382.60 1.20% Nasdaq 11675.54 45.02 0.39% S&P 500 3951.57 34.93 0.89% FTSE 100 7403.85 68.45 0.93% Nikkei Stock Closed Hang Seng 19155.22 154.51 0.81% Kospi 2398.28 19.08 0.80% SGX Nifty* 17077.50 53.0 0.31% *March contract USD/JPY 131.22-23 -0.07% Range 131.61 131.04 EUR/USD 1.0715-18 -0.06 Range 1.0727 1.0716 CBOT Wheat May $7.006 per bushel Spot Gold 1,980.46/oz 0.1% Nymex Crude (NY) $67.60 $0.86 US STOCKS
Stocks climbed on hopes for stability in the banking sector after regulators engineered a deal for Swiss banking giant UBS to take over rival Credit Suisse.
The Dow Jones Industrial Average added about 1.2% and the S&P 500 rose 0.9%. The tech-focused Nasdaq Composite Index climbed 0.4%.
Amazon.com shares dropped 1.3% after the company said it would cut 9,000 more jobs, after announcing plans for 18,000 job cuts in early January. And shares in First Republic Bank, a key concern at present of U.S. officials, fell 47%.
Authorities have sought to halt a dangerous decline in confidence in the global banking system and get ahead of potential stress in markets. As well as the UBS-Credit Suisse deal, regulators moved to bolster international access to U.S. dollars.
"It's bullish that governments have stepped in," said Ross Mayfield, investment strategy analyst at Baird. But he said any investor optimism is tempered by fears that the turmoil isn't over. "So I think it's relief but with a looming uncertainty and angst about what might really be underneath if you really keep digging."
ASIAN STOCKS
Markets in Japan are closed for a holiday today.
South Korea's benchmark Kospi was 0.7% higher at 2396.82 in early trade, led by gaming and shipbuilding stocks. Wall Street's gains overnight after U.S. and European regulators acted to calm jitters over the global banking system were supporting investor sentiment, though caution ahead of the Fed's rate decision is capping the upbeat mood.
Hong Kong's Hang Seng Index was up 0.4% to 19074.54 in early trade, tracking a recovery in U.S. stocks. Asian markets are set to rise as investor sentiment recovered after the European Central Bank reassured investors it had sufficient liquidity to aid the financial system, said CMC Markets analyst Tina Teng in a note.
China stocks advanced, picking up from a muted trading pattern in recent sessions. The benchmark Shanghai Composite Index rose 0.2% to 3242.00 and the Shenzhen Composite Index gained 0.3% to 2059.95. The tech-heavy ChiNext Price Index added 0.6% to 2304.43. Analysts said the market may be able to sustain an upturn into the coming weeks, as investors' risk appetite could pick up after the Fed meeting this week. A-shares may also appear more attractive given China's reopening recovery momentum and rising overseas risk after the Credit Suisse crisis, Galaxy Securities analysts said.
FOREX
Asian currencies were mixed against the USD in the morning session, but may strengthen amid recovering risk appetite. Market sentiment appears to be on the mend, following Wall Street gains overnight, as immediate worries over the strength of the global financial system have dissipated, said MUFG Bank's senior currency analyst Jeff Ng in a research report. Going forward, market participants will probably continue to watch for any sentiment-driven moves and on the Fed's policy decision for coming sessions, Ng added. USD/KRW rose 0.4% to 1,308.52, USD/THB edged 0.1% lower to 34.04 and the USD/SGD was little changed at 1.3383.
METALS
Gold prices were slightly up in early Asian trade, after settling at their highest in about 11 months on Monday. Near-term focus will be on the FOMC meeting, in which "traders should find out quickly if gold has enough momentum to retest the record highs seen a few years ago," said Oanda's senior market analyst Edward Moya in a note. ?Spot gold was up 0.1% at 1,980.46/oz.
OIL SUMMARY
Oil prices were higher in early Asian trade, supported by growing speculation that the Fed may leave interest rates steady when it meets Wednesday amid a crisis in the banking sector. The focus in the near term may also be on supply; last month, Russia warned that March volumes would fall by 500kb/d, seemingly recognizing how ongoing sanctions is affecting crude and refined products, ANZ analysts said in a note. Front-month WTI and front-month Brent were each 0.2% higher at $67.75/bbl and $73.94/bbl, respectively.
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(END) Dow Jones Newswires
03-20-23 2316ET
