GLOBAL MARKETS DJIA 33869.27 169.39 0.50% Nasdaq 11718.12 -71.46 -0.61% S&P 500 4090.46 8.96 0.22% FTSE 100 7882.45 -28.70 -0.36% Nikkei Stock 27315.63 -355.35 -1.28% Hang Seng 20935.28 -255.14 -1.20% Kospi 2443.88 -25.85 -1.05% SGX Nifty* 17856.00 -21 -0.12% *Feb contract USD/JPY 131.77-78 +0.29% Range 131.93 131.16 EUR/USD 1.0664-67 -0.12% Range 1.0703 1.0656 CBOT Wheat March $7.860 per bushel Spot Gold $1,861.70/oz -0.2% Nymex Crude (NY) $79.83 $1.77 U.S. STOCKS
U.S. stocks swung between small gains and losses Friday, capping a week in which this year's investor optimism about the direction of the economy faced its first test.
The S&P 500 fell in early trading, then inched up before moving in a tight range for the rest of the day. It rose 8.96 points, or 0.2%, to 4090.46. But the index still turned in a 1.1% weekly decline, its worst weekly performance so far in 2023.
The Dow Jones Industrial Average rose 169.39 points, or 0.5%, to 33869.27. The Nasdaq Composite fell 71.46 points, or 0.6%, to 11718.12. All three indexes finished the week lower, the first time that has happened since December. The Nasdaq snapped a five-week winning streak with its 2.4% weekly decline.
ASIAN STOCKS
Japanese stocks were lower in early trade, dragged by falls in electronics stocks, as caution continues about policy tightening by global central banks and the economic outlook. Earnings remained in focus, with Recruit Holdings and Suntory Beverage & Food set to announce their results later in the day. The Nikkei Stock Average was down 0.7% at 27469.36.
South Korea's benchmark Kospi fell 0.7% to 2452.27 in early trade as semiconductor, internet and battery stocks retreated. Risk aversion was weighing on investor sentiment as inflation fears remain ahead of the U.S. January CPI data due Tuesday. USD/KRW was 0.2% higher at 1,267.90. CJ Cheiljedang edged down 0.1% ahead of its 4Q earnings later in the day. Index heavyweight Samsung Electronics was 0.3% lower.
Hong Kong's Hang Seng Index fell 1.3% at 20910.08 in early trade, weighed by property and tech shares. The Hang Seng Properties Index is down 2.95% after data last week showed that credit growth eased for a fourth consecutive month in January, driven by sluggish mortgage-loan activity that suggests weak demand for home purchases. Tech companies were also down with U.S. Nasdaq futures pointing lower. The Hang Seng Tech Index was down 1.7% at 4287.53. Pharmaceutical companies were higher.
Chinese shares were mixed in early trade, amid concerns over the global economic outlook. The China-U.S. relations were likely to be in focus, after the U.S. on Friday blacklisted six Chinese companies that it said were involved in Beijing's surveillance-balloon program, in retaliation for the suspected spy balloon that traversed the U.S. Auto stocks were lower. The benchmark Shanghai Composite Index was down 0.2% to 3255.88, the Shenzhen Composite Index was flat at 2164.15 and the ChiNext Price Index was 0.2% higher at 2550.41.
FOREX
Asian currencies weakened against the USD in early Asian trade. The market's mood is turning slightly sour owing to increased interest-rate hike expectations ahead of key U.S. inflation data due out Tuesday, MUFG Bank analysts say in a research report. This data may spark some USD strength in coming sessions, especially if the reading surprises on the upside, the analysts add. USD/KRW rises 0.6% to 1,273.57 and USD/SGD gains 0.2% to 1.3312 while AUD/USD edges 0.1% lower to 0.6914. (ronnie.harui@wsj.com)
NZD/USD was at 0.6303 early Monday, with the greenback continuing to lead the market as U.S. bond yields adjusted higher amid a ramping up of hawkish Fedspeak and a slight rebound in U.S. data, ANZ Bank said. ANZ says the key question was: how much further has the Fed's tightening cycle got to go? "That could help the USD, but other factors that helped the USD along last year (like geopolitics and the Fed hiking aggressively as others lagged) aren't present now, so we won't overplay higher bond yields (they are even higher here!)," ANZ said. "So there's a bit of balance ahead of the next major data (U.S. CPI data at 2.30am Wednesday NZ time) and next week's RBNZ Monetary Policy Statement."
METALS
Gold edged lower in the early Asian session amid fears of higher U.S. inflation data, which are due out this week. Upside risks to this inflation reading could complicate how high Fed tightening bets go, which may keep the precious metal vulnerable, said Oanda. If the U.S. bond market sell-off persists, USD could rally, which should bring down gold prices, it added. Spot gold was down 0.2% at $1,861.70/oz.
OIL SUMMARY
Oil fell in the morning Asian session in a likely technical correction after prices posted a gain of more than 8% last week. This weakness in oil prices also likely reflects the market realizing that Russia's latest plan to reduce oil production is already mostly priced in, ING said. It's more likely that Russia is simply struggling to find buyers for its oil, especially after the EU ban on Russian refined products went into effect earlier this month, ING added. Front-month WTI crude oil futures fell 1.0% to $78.92/bbl; front-month Brent crude oil futures were 1.0% lower at $85.52/bbl.
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(END) Dow Jones Newswires
02-12-23 2215ET
