GLOBAL MARKETS DJIA 34838.16 -97.31 -0.28% Nasdaq 14681.07 8.39 0.06% S&P 500 4387.16 -8.10 -0.18% FTSE 100 7081.72 49.42 0.70% Nikkei Stock 27499.41 -281.61 -1.01% Hang Seng 25992.32 -243.48 -0.93% Kospi 3221.21 -1.83 -0.06% SGX Nifty* 15867.50 -43.5 0.27% *Aug contract USD/JPY 109.22-23 -0.08% Range 109.35 109.19 EUR/USD 1.1870-73 -0.02% Range 1.1883 1.1868 CBOT Wheat Sep $7.294 per bushel Spot Gold $1,810.56/oz. -0.1% Nymex Crude (NY) $71.38 -$2.57 US STOCKS
The S&P 500 gave up its early gains and slipped to start August as investors weighed a strong earnings season with growing uncertainty about the Delta variant and economic outlook.
The S&P 500 retreated 0.2% and the Dow Jones Industrial Average lost 0.3%. The tech-heavy Nasdaq Composite gained 0.1%.
Earnings and economic data have led investors to keep piling into stocks, putting major indexes within striking distance of records. Still, some are cautious that the highly contagious Delta strain of coronavirus, a prolonged spell of inflation and China's efforts to rein in tech firms could lead to bouts of volatility.
ASIAN STOCKS
Japan's Nikkei Stock Average was down 0.4% at 27677.59, dragged by falls in pharmaceutical, energy and airline stocks, as the yen strengthened on concerns about the pandemic's economic downside. USD/JPY was at 109.24, down from 109.67 as of Monday's Tokyo market close.
South Korea's benchmark Kospi was up 0.3% at 3232.20 in early trading, led by tech and gaming stocks. Renewed optimism about the country's tech-driven economic recovery following upbeat trade data for July continued to support investor sentiment. Offshore investors were net buyers, while retail and institutional investors were net sellers.
Hong Kong shares fell as losses in technology companies outweighed gains in auto makers. The benchmark Hang Seng Index was down 0.8% at 26009 and the Hang Seng Tech index dropped 1.1%.
Chinese stocks were lower in early trade, tracking declines in other Asian equity markets. Pandemic developments were likely to be in focus in China, following news that the highly contagious Covid-19 Delta variant was found in more than 20 cities, IG said. "Efforts to stem the spread of the virus may hint at a slower economic activity and softer energy demand in the months to come," it said. The Shanghai Composite Index was 0.7% lower at 3441.34 and the Shenzhen Composite Index fell 0.6% to 2422.30. The ChiNext Price Index--a measure for emerging industries and startups--slipped 0.8% to 3466.30.
FOREX
Asian currencies were mixed against USD amid worries over the pace of global growth and the spread of the Delta variant of Covid-19. A slightly softer but still elevated U.S. ISM reading has added to peak-growth concerns, NAB said. Meanwhile, China is experiencing its largest outbreak of Covid-19 in six months, with new cases covering nearly half of the country's 32 provinces, NAB added. USD/KRW rose 0.2% to 1,153.41, USD/SGD was steady at 1.3531 and AUD/USD edged 0.1% lower to 0.7361.
METALS
Gold inched lower in Asian trading after rising overnight on a further pullback in U.S. 10-year Treasury yields. The precious metal could continue to trade above $1,800 an ounce, due to concerns over the rising number of Covid-19 Delta variant cases, which is likely to continue weighing on global economic growth, OCBC said. Spot gold was 0.1% lower at $1,810.56/oz.
OIL SUMMARY
Oil gained in morning Asian trade after declining overnight on disappointing U.S. and China economic data. Rising case numbers of the highly contagious Covid-19 Delta variant globally is likely to remain a major concern for oil demand, CBA said. "Restrictions on mobility, like we're seeing through parts of Asia, are particularly negative for oil demand given that two thirds of global oil consumption is tied to transportation," it adds. Front-month WTI crude oil futures gained 0.5% to $71.59/bbl, while Brent was 0.4% higher at $73.18/bbl.
TOP HEADLINES Tokyo July Overall CPI Down 0.1% On Year Stocks Reverse Early Gains, Finish Modestly Lower Yellen to Enact Steps to Avoid Breaching Debt Ceiling Delta Variant Stalls Asia's Economic Recovery RBNZ to Further Tighten Mortgage Lending U.S. Factory Growth Held Solid Momentum in July Fintechs Need to Be Regulated More Like Banks, Says Global Regulator Fed Chairman's Approach to Regulation Has Drawn Criticism Banks Pull Back Funds for Coal Projects in Asia Trump to Fight Release of Tax Returns, His Lawyer Says Louisiana, Bay Area to Reinstate Indoor Mask Mandates White House Pushes Distribution of Aid to Renters as Eviction Moratorium Expires Fuel-Efficiency Standards Are Set to Get Tougher. The Question Is by How Much Goldman Sachs Is Giving Entry-Level Bankers a Nearly 30% Raise Federal Labor Official Recommends Alabama Amazon Workers Hold New Vote, Union Says Ernst & Young to Pay $10 Million to Settle SEC Probe Qantas Furloughs 2,500 Workers Amid Delta Outbreaks Li Auto Seeks to Raise Around $1.9 Billion in Hong Kong Offering Device Maker Linked to Alleged Ponzi-Like Scheme Loses Bankruptcy Funding
(END) Dow Jones Newswires
08-02-21 2315ET
