GLOBAL MARKETS DJIA 34496.06 -250.19 -0.72% Nasdaq 14486.20 -93.34 -0.64% S&P 500 4361.19 -30.15 -0.69% FTSE 100 7146.85 51.30 0.72% Nikkei Stock 28278.31 -219.89 -0.77% Hang Seng 25128.97 -196.12 -0.77% Kospi 2916.95 -39.35 -1.33% SGX Nifty* 17876.50 -84.5 -0.47% *Oct contract USD/JPY 113.28-29 -0.04% Range 113.49 113.25 EUR/USD 1.1557-60 +0.03% Range 1.1559 1.1547 CBOT Wheat Dec $7.316 per bushel Spot Gold $1,755.07/oz 0.1% Nymex Crude (NY) $80.45 $1.10 US STOCKS
U.S. stocks fell, while oil prices rallied.
The S&P 500 retreated 0.7%, while the Dow Jones Industrial Average declined 0.7%. The technology-heavy Nasdaq Composite slipped 0.6%. Stocks rose in the morning, but later turned lower as investors fretted about the combination of inflation and slowing growth. Inflation has proved stickier than expected, brought on by supply-chain disruptions, labor shortages and surging energy prices.
ASIAN STOCKS
Japan's Nikkei Stock Average was down 0.4% at 28378.31 as falls in tech, airline and retail stocks offset gains in energy and auto stocks. Rising crude oil prices, as well as any economic policy steps from new Japanese Prime Minister Fumio Kishida, were in focus.
South Korea's Kospi was 1.2% lower at 2921.72 in early trade, tracking an overnight decline on Wall Street, haunted by fears of rising oil prices and earnings worries. Investors were refraining from big bets ahead of the Bank of Korea's rate-setting meeting later in the day, with foreigners remaining net sellers.
Hong Kong's Hang Seng Index fell 1.5% to 24936.53 in early trade, tracking losses on Wall Street overnight. Tech stocks retreated, following Monday's strong performance, with Alibaba Group leading losses, down 4.7%, while Tencent and Meituan each slipped 2.3%. The Hang Seng TECH Index dropped 2.7% to 6230.37. Chinese oil majors gained amid elevated oil prices.
Chinese stocks fell in early trade amid losses among miners and continued weakness in electricity providers. Turnover in the A-share market has decreased, with some selling pressure expected in the near term, China Fortune Securities said. The Shanghai Composite Index dropped 0.7% to 3567.84, the Shenzhen Composite Index declined 0.8% and the ChiNext Price Index was 0.7% lower.
FOREX
Most Asian currencies weakened against USD amid growing inflation concerns. Rising worries about whether inflation will be transitory have begun to appear, IG said. Recent strength in commodities prices, together with wage increases, seem to be fueling more persistent price pressures, challenging expectations that the Fed's tapering timeline may be postponed due to lackluster jobs gains, IG added. USD/KRW rose 0.3% to 1,199.56 and USD/SGD edged 0.1% higher to 1.3562, while AUD/USD was down 0.1% at 0.7336.
METALS
Gold edged higher in the Asian morning session, as markets awaited U.S. inflation data to be released this week. The precious metal could be forming a base as risks to the U.S. economic outlook continue to grow, Oanda said. Also, gold is beginning to attract some safe-haven flows, owing to factors such as supply-chain issues showing no major signs of easing, Oanda added. Spot gold was up 0.1% at $1,755.07/oz.
OIL SUMMARY
Oil fell in Asia morning trade, in a likely technical correction after U.S. oil futures on Monday settled above $80/bbl for the first time in nearly seven years. Increasing tightness in the physical market is likely to put further upward pressure on crude-oil prices in 4Q, ANZ said. The bank has raised its short-term target for oil prices to $90.00/bbl. Front-month WTI crude oil futures were down 0.4% at $80.19/bbl. Front-month Brent crude oil futures were down 0.4% at $83.32/bbl.
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(END) Dow Jones Newswires
10-11-21 2315ET
