GLOBAL MARKETS DJIA 33063.61 -643.13 -1.91% Nasdaq 12381.57 -323.64 -2.55% S&P 500 4137.99 -90.49 -2.14% FTSE 100 7533.79 -16.58 -0.22% Nikkei Stock 28428.86 -365.64 -1.27% Hang Seng 19543.84 -113.14 -0.58% Kospi 2439.88 -22.62 -0.92% SGX Nifty* 17412.50 -77.5 -0.44% *Aug contract USD/JPY 137.24-25 -0.19% Range 137.71 137.09 EUR/USD 0.9942-45 +0.01% Range 0.9952 0.9931 CBOT Wheat Sep $7.704 per bushel Spot Gold $1,734.77/oz -0.1% Nymex Crude (NY) $90.23 -$0.54 US STOCKS
U.S. stocks fell as traders worried about further interest-rate increases and the backdrop of a slowing economy.
The Dow Jones Industrial Average slid 1.9%. The S&P 500 dropped 2.1%, while the technology-focused Nasdaq Composite tumbled more than 2.5%.
The declines came after U.S. stocks ended last week lower, snapping a four-week stretch of gains for the S&P 500. Stocks rose from July to mid-August on hopes that inflation had started to peak, which would allow the Federal Reserve to ease up on lifting rates, as well as on generally strong corporate earnings. But Fed officials remained publicly hawkish, casting doubt on the strength of the midsummer rally.
"The market got a little ahead of itself," said Philip Blancato, chief executive of Ladenburg Thalmann Asset Management. "The market wants the Fed to sound off on the dovish standpoint, but the Fed's not there yet."
ASIAN STOCKS
Japanese stocks were lower in morning trade, dragged by falls in tech and auto stocks as concerns persisted over the Fed's further tightening. Investors are focusing on economic data and their implications for policy-making ahead of the Fed's Jackson Hole symposium later this week. The Nikkei Stock Average was down 1.0% at 28499.25.
South Korea's Kospi fell 0.4% to 2452.54 in early trade, as airline, biotech and electronics stocks retreated. Foreign investors were net sellers amid renewed caution about the U.S. Fed's pace of rate increases ahead of a meeting of central bankers later this week in Jackson Hole.
Hong Kong's Hang Seng Index was 0.2% lower at 19614.07 after swinging between mild losses and gains in a volatile start to the session. Wall Street's selloff overnight may weigh on Asian equity markets, although China's accommodative monetary policy could continue to support Chinese stocks, Tina Teng, markets analyst at CMC Markets, said in an email. The Hang Seng Tech Index was up 0.4% at 4169.46.
Chinese shares were broadly lower in early trade as concerns over global economic growth weighed on markets in the region and investors kept a wary eye on the meeting of central bankers later this week at Jackson Hole. The benchmark Shanghai Composite Index declined 0.1% to 3274.85, the Shenzhen Composite slipped 0.2% to 2224.06 and the ChiNext Price Index gained 0.1% to 2781.79. China's financial sector will likely remain closely watched, after the PBOC called on state-owned banks to support the economy via increased lending. The PBOC cut benchmark interest rates on Monday.
FOREX
Asian currencies were mixed against the USD in the Asian morning session, but could weaken amid risk-off sentiment spurred by losses in regional equity markets. The day ahead will bring into focus a slew of manufacturing and services PMI data, which are likely to show further moderation in economic conditions and leave markets with the glaring theme of recession risks, said Yeap Jun Rong, market strategist at IG. USD/KRW fell 0.2% to 1,341.67, while USD/THB was up 0.1% at 36.13 and AUD/USD rose 0.3% to 0.6893.
METALS
Gold edged lower in the early morning Asian session, weighed by prospects of hawkish comments from Fed Chair Powell this week. Investors are bracing for a potentially hawkish speech by Powell at the Jackson Hole symposium, Oanda senior market analyst Edward Moya said in an email. While the precious metal will eventually settle on a trading range, gold's price floor might be a little lower as the risks of energy and food inflation could keep Fed rate increases aggressive into 2023, Moya added. Spot gold was down 0.1% at $1,734.77/oz.
OIL SUMMARY
Oil futures rose in early Asian trade. In a written response to questions from Bloomberg, Prince Abdulaziz bin Salman, Saudi Arabia's minister of energy, said OPEC+ has the "commitment, the flexibility and the means" within its Declaration of Cooperation to deal with challenges in the market, including cutting production "at any time and in different forms." The minister is pushing back on the recent decline in oil prices and asserts that extreme volatility and lack of liquidity in the futures market are disconnecting prices from fundamentals and may force OPEC+ to act, NAB said in a commentary. Front-month WTI crude oil futures were 0.5% higher at $90.82/bbl; front-month Brent crude oil futures were 0.4% higher at $96.88/bbl.
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(END) Dow Jones Newswires
08-22-22 2315ET
