GLOBAL MARKETS DJIA 32196.66 466.36 1.47% Nasdaq 11805.00 434.04 3.82% S&P 500 4023.89 93.81 2.39% FTSE 100 7418.15 184.81 2.55% Nikkei Stock 26561.35 133.70 0.51% Hang Seng 19961.53 62.76 0.32% Kospi 2601.09 -3.15 -0.12% SGX Nifty* 15814.00 41.5 0.26% *May contract USD/JPY 128.89-90 -0.26% Range 129.64 128.71 EUR/USD 1.0400-03 -0.11% Range 1.0418 1.0391 CBOT Wheat May $11.672 per bushel Spot Gold $1,812.19/oz 0.1% Nymex Crude (NY) $110.28 $4.15 U.S. STOCKS
U.S. stocks ended higher Friday after a punishing week of losses across major indexes.
The Nasdaq Composite jumped 434.04 points, or 3.8%, to 11805.00, its largest one-day percentage gain since November 2020. The S&P 500 gained 93.81 points, or 2.4%, to 4023.89, while the Dow industrials rose 466.36 points, or 1.5%, to 32196.66. All three indexes finished below highs seen earlier in the session.
ASIAN STOCKS
Japan's Nikkei Stock Average was up 1.4% at 26804.37, led by gains in electronics and tech stocks, thanks to a weaker yen and continuing hopes for an earnings recovery from the Covid-19 pandemic. Pneumatic-control engineering company SMC jumped 6.2% after projecting a 12% rise in fiscal-year operating profit. Mobile company KDDI added 3.8% after it estimated a 2.3% rise in fiscal-year net profit and announced a share buyback. Meanwhile, Honda Motor dropped 3.0% after 4Q net profit fell 41% on year. Investors were focusing on earnings with Mitsubishi UFJ Financial Group and Recruit Holdings due to announce their results later in the day.
South Korea's Kospi rose 0.4% to 2614.40 in early trading, led by gains in tech and airline stocks. Index heavyweight Samsung Electronics was 0.8% higher. Biotech company SK Bioscience rose 4.5%, extending gains to a second day after winning approval for its typhoid vaccine exports. Apple supplier LG Innotek added 2.1% on solid demand for camera modules. Cinema-chain operator CJ CGV gained 3.1% on the ongoing relaxation of Covid-19 social-distancing rules. Airlines advanced amid growing number of countries easing pandemic-induced travel controls. Asiana Airlines was up 1.1% ahead of its 1Q earnings report due later in the day.
Hong Kong's Hang Seng Index trimmed its early gains and was last up 0.2% at 19943.50 as China's economic data missed expectations. Shanghai intends to gradually reopen shopping malls, supermarkets, restaurants and barber shops from Monday, KGI Research said in a morning commentary. Among the HSI's best performers, Country Garden Holdings climbed 5.7%, Galaxy Entertainment rose 5.4% and Longfor Group added 5.4%. The Hang Seng TECH Index was up 0.9% at 4076.58.
Chinese stocks pared gains and were mixed following the release of China's industrial output data for April. The Shanghai Composite Index turned lower and was last down 0.1% at 3080.40, the Shenzhen Composite Index was 0.3% higher at 1937.20 while the ChiNext Price Index was flat at 2358.61. Auto stocks were lower, with SAIC Motor dropping 2.8% and BYD Co. declining 0.8%. The country's property market could be in focus, after the PBOC on Sunday cut the lower limit on mortgage rates for first-home buyers.
FOREX
Most Asian currencies strengthened against USD in the early Asian session as risk appetite improvesd in the wake of Wall Street's rally on Friday. The USD Index's upside could slow if Friday's recovery in risk appetite extends in the near term, said Westpac analysts in a research report. However, the broader USD bull trend remained in good shape, they said, noting the Fed was still resolutely hawkish while the eurozone was coping with a more acute stagflationary situation and China was battling a Covid-19 outbreak with strict lockdowns. USD/KRW fell 0.8% to 1,276.75 and USD/SGD was down 0.2% at 1.3921.
Having broken down below its lowest levels since mid-2020, AUD/USD was ripe for a further fall, said Morgan Stanley. Currently trading at 0.6949, the pair could extend down to 0.6700 over coming months amid continued China risks from its zero-Covid policy, while the RBA may likely disappoint relatively stretched market pricing for interest rate increases. Markets were expecting the RBA to raise its official cash rate to around 2.8% by the end of the year, from 0.35% now. Morgan Stanley said it expected a trough for AUD/USD of 0.6700, but from there a climb back to the low 0.7000 was still reasonable into 2023.
METALS
Gold edged higher in early Asian trading in a likely technical rebound after gold futures posted their lowest close since Feb. 4 on Friday. However, gold has tentatively tested the waters below $1,800/oz and still remained in a danger zone for further downside, said Oanda's senior market analyst Edward Moya in an email. Any decent rebound in the precious metal might fade, with sellers probably emerging well before the $1,840/oz level, the analyst said. Spot gold was up 0.1% at $1,812.19/oz.
OIL SUMMARY
Oil prices reversed direction to move lower after rising in early Asia trade. The busy travel season of June, July and August would likely boost demand significantly as the need for road and jet fuel accelerates, said Rystad Energy's senior analyst Louise Dickson in an email. Demand for oil to power cooling systems in the Middle East during the "baking" summer months will also probably be boosted, said the analyst. Front-month WTI crude oil futures were 1.3% lower at $109.06/bbl; front-month Brent crude oil futures were 1.5% lower at $109.91/bbl.
TOP HEADLINES China PBOC Cuts Mortgage Rate Lower Limit for First-Home Buyers China PBOC Keeps Key Policy Rates Unchanged China's Economic Activity Cooled Sharply in April China Property Investment Dropped 2.7% in First Four Months Hong Kong-Listed Property Developers Rise on China's Lower Mortgage Rates Adani to Buy Holcim's India Cement Business in $10.5 Billion Deal Saudi Aramco Posts Record Quarterly Profit on Surging Oil Prices Brambles Mulls Options Amid Takeover Talks With CVC Capital Jeff Bezos Criticizes Joe Biden in Twitter Spat Over Inflation Shanghai Lays Out Covid-19 Reopening Plan as China Cancels 2023 Soccer Tournament New Zealand Targets Cow Burps, Clunkers With Climate Cash India Bans Wheat Exports, Putting More Pressure on Global Food Supplies Yellen Seeks to Win European Support for a Tax Deal Congress Hasn't Approved Individual Investors Step Back From Options Bets Walmart Anticipates a Store Manager Shortage Despite $200,000-a-Year Pay CEO Pay Packages Rose to $14.7 Million in 2021, a New High Ford Unloads More Shares of Electric-Vehicle Startup Rivian Finland Plans Next Step in NATO Bid as Ukraine Mounts Counteroffensive Near Key Eastern City Lebanon Votes for New Government in First Election Since Economic Collapse U.A.E. Names Mohammed bin Zayed as New Leader Following His Half-Brother's Death Somalia's Parliament Picks Former Leader, Hassan Sheikh Mohamud, as President
(END) Dow Jones Newswires
05-15-22 2315ET
