GLOBAL MARKETS DJIA 34715.39 -313.26 -0.89% Nasdaq 14154.02 -186.23 -1.30% S&P 500 4482.73 -50.03 -1.10% FTSE 100 7585.01 -4.65 -0.06% Nikkei Stock 27403.20 -369.73 -1.33% Hang Seng 24921.25 -31.10 -0.12% Kospi 2841.39 -21.29 -0.74% SGX Nifty* 17684.00 -116 -0.65% *Jan contract USD/JPY 113.73-74 -0.31% Range 114.16 113.70 EUR/USD 1.1321-24 +0.11% Range 1.1325 1.1302 CBOT Wheat March $7.902 per bushel Spot Gold $1,837.30/oz -0.1% Nymex Crude (NY) $86.90 -$0.06 U.S. STOCKS
U.S. stocks fell on Thursday, as a late-afternoon selloff erased what had been an early rally, showing that investors are still concerned about the prospects of tightening monetary policy and slowing growth.
The Nasdaq Composite Index dropped 186.23 points, or 1.3%, to 14154.02, a day after a tech selloff dragged down indexes. The index fell more than 3% from its intraday high to its low. It is now down nearly 12% from its November high.
The Dow Jones Industrial Average lost 313.26 points, or 0.9%, to 34715.39. It was the index's fifth consecutive down session, its longest such streak since September. The blue-chip index has fallen in nine of the past 11 sessions. The S&P 500 dropped 50.03 points, or 1.1%, to 4482.73.
ASIAN STOCKS
Japanese stocks were broadly lower, dragged by especially sharp falls in auto and electronics stocks, as the yen strengthened. Concerns about the Fed's tightening were also weighing on the market. USD/JPY was at 113.93, down from 114.47 as of Thursday's Tokyo stock market close. Covid-19 infection trends in Japan and the government's countermeasures were in focus ahead of the earnings season set to start next week. The Nikkei Stock Average was down 2.0% at 27209.86.
South Korea's benchmark Kospi lost 0.7% to 2841.73 in early trade, tracking Wall Street's fall overnight. Electronics and energy stocks were lower as foreign and institutional investors remain net sellers amid lingering concerns about central banks' tighter monetary policy. The downbeat mood was offset by the country's solid trade data with exports growing 22% on year in the first 20 days of January. Index heavyweight Samsung Electronics fell 1.3% while home-appliance giant LG Electronics lost 2.9%.
Hong Kong's Hang Seng Index slipped 0.5% to 24830.15 after logging strong gains on Thursday, as the Chinese tech sector and some financial shares weakened. The local market's near-term outlook was relatively firm despite recent weakness on Wall Street, KGI Securities said, as Beijing moves to shore up a slowing economy by loosening monetary policy. NetEase was the top loser with a 5.4% decline, while Alibaba Group retreated 4.1%. Country Garden Holdings dropped 3.9% after the company said it planned to issue convertible bonds to raise HK$3.90 billion.
Chinese shares fell, tracking broad declines among Asian equities. The Shanghai Composite Index was 0.6% lower at 3534.37, the Shenzhen Composite Index fell 0.5% to 2406.83 and the ChiNext Price Index slipped 0.8% to 3040.79. Auto stocks declined after news that China's industry ministry expected tight supplies of semiconductors over a relatively long period of time. BYD Co. fell 0.6% and SAIC Motor was off 1.2%. The Chinese property market should remain in focus, following the government's move to draft rules to give developers more access to escrow funds, IG said. "This will provide crucial help to developers to meet debt obligations, avoiding a serious cash crunch," IG added.
FOREX
Asian currencies may weaken against USD on risk-off sentiment spurred by losses in regional equity markets and U.S. stock futures, ahead of the FOMC meeting next week. USD should continue to firm into that meeting, Westpac said. While a lot is priced in now, a straight comparison of USD Index versus yield spreads shows that USD hasn't fully priced in this story, Westpac added. USD/KRW was steady at 1,192.87, USD/THB was 0.3% higher at 32.98 and AUD/USD was down 0.3% at 0.7204, according to FactSet.
METALS
Gold edged lower in the morning Asian session on position adjustment ahead of the weekend. The focus of gold traders was shifting to next week's FOMC meeting, with Russia-Ukraine tensions probably factored into the prices of precious metals, Phillip Futures said. Rising U.S. interest rates remained a potential headwind since this translates into a higher opportunity cost of holding non-yielding bullion, the brokerage added. Spot gold was down 0.1% at $1,837.30/oz.
OIL SUMMARY
Oil declined in early Asian trade, weighed by an unexpected weekly rise in U.S. crude supplies. However, oil could head higher in the near term despite the surprise build in the U.S., as the global market remained tight, Oanda said. Supply has been disrupted in countries including Libya and the UAE. ANZ also noted that OPEC+ production curb compliance was high, having surged to 120% in December, meaning the group underproduced its monthly target. CBA said the resilience of oil demand amid the spread of the Omicron variant continued to support global prices. Front-month WTI was down 2.1% at $83.78/bbl, while Brent was 1.9% lower at $86.72/bbl.
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(END) Dow Jones Newswires
01-20-22 2215ET
