GLOBAL MARKETS DJIA 33003.57 341.73 1.05% Nasdaq 11462.98 83.50 0.73% S&P 500 3981.35 29.96 0.76% FTSE 100 7944.04 29.11 0.37% Nikkei Stock 27879.31 380.44 1.38% Hang Seng 20570.99 141.53 0.69% Kospi 2425.52 -2.33 -0.10% SGX Nifty* 17466.00 111.0 0.64% *March contract USD/JPY 136.59-60 -0.13% Range 136.80 136.51 EUR/USD 1.0603-06 +0.08% Range 1.0617 1.0596 CBOT Wheat March $7.012 per bushel Spot Gold $1,838.50/oz 0.2% Nymex Crude (NY) $77.95 $0.26 US STOCKS
U.S. stocks climbed, with gains across sectors offsetting declines in financial and consumer discretionary shares.
The S&P 500 rose 0.8%. The Nasdaq Composite gained 0.7%, and the Dow Jones Industrial Average advanced 1%.
Major indexes began the day mostly lower as many investors believed that the Federal Reserve is likely to keep interest rates higher for longer.
Stocks then wiped out their declines for the day after Atlanta Fed President Raphael Bostic said that he "still very firmly" supported raising interest rates in quarter-point increments.
ASIAN STOCKS
Japanese stocks were higher in morning trade, led by gains in electronics stocks as the yen's recent weakness raised hopes for earnings improvement despite uncertainty over the policy outlook. Bank stocks were also rising, following gains in long-term U.S. Treasury yields overnight. USD/JPY was at 136.72, compared with 136.64 as of Thursday's Tokyo stock-market close. Investors were closely watching economic data for their policy implications. The Nikkei Stock Average was up 0.7% at 27694.09.
South Korea's benchmark Kospi edged 0.2% higher to 2432.81 in early trade, as consumer and industrial-material stocks advanced. Investors were looking for shares that could benefit from China's reopening from strict Covid-19 restrictions and possible economic stimulus ahead of the country's annual parliament session that is due to begin on Sunday. USD/KRW was 0.5% lower at 1,309.50.
Hong Kong's Hang Seng Index rose 1.1% to 20665.20 in early trade, tracking Wall Street gains overnight. U.S. stocks managed to rebound almost 1% on Atlanta Fed President Bostic's comments, said Charu Chanana, market strategist at Saxo Markets, in an email. Bostic said he "still very firmly" supported raising rates in 25bp increments. The Hang Seng Tech Index was 2.2% higher at 4215.91.
Chinese stocks opened higher, driven by positive sentiment as the National People's Congress approaches, where Beijing is likely to set a clear pro-growth tone for the year. Chip makers and insurance companies led gains. The benchmark Shanghai Composite Index edged up 0.1% to 3314.77, the Shenzhen Composite Index rose 0.1% and the ChiNext Price Index was 0.2% higher.
FOREX
Most Asian currencies strengthened against the USD in the early Asian session amid improving risk appetite spurred by gains in most regional equity markets. China's National People's Congress begins this weekend, and it should offer more evidence of growth-supportive measures, said Stephen Innes, managing partner at SPI Asset Management, in an email. While higher-for-longer U.S. interest rate dynamics will probably prevent a full-on revival of January's bullish CNY movements, some China proxy trades might be worth adding where AUD could be a prime beneficiary, Innes added. AUD/USD rose 0.2% to 0.6748, while USD/KRW fell 0.6% to 1,303.68 and USD/SGD edged 0.1% lower to 1.3461.
METALS
Gold prices were higher in early Asian trade. "Gold prices are struggling after the bond market selloff accelerated following robust labor data that is sending Fed rate hike bets higher," said Edward Moya, a senior market analyst at Oanda in a note. Focus is now on the ISM Services index, which could provide some insight if the economy will come back to reality following a very robust January, and next week's Fed Chair Powell's semi-annual monetary report to Congress and the nonfarm payroll report, he said. Gold is expected to trade in the range $1,825-$1,850/oz leading up to these events, he added. Spot gold was 0.2% higher at $1,838.50/oz.
OIL SUMMARY
Crude oil prices fell as the prospect of further monetary tightening among global central banks offset signs of stronger demand in Asia, said ANZ analysts in a note. ANZ cited ECB President Christine Lagarde suggesting that rate increases could extend beyond March, and Boston Fed chief Susan Collins saying that further interest-rate increases are needed to get inflation under control. The front-month contract for WTI futures was down 0.2% at $78.00/bbl, while the front-month Brent crude futures contract fell 0.3% to $84.54/bbl.
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(END) Dow Jones Newswires
03-02-23 2215ET
