GLOBAL MARKETS DJIA 33269.77 133.40 0.40% Nasdaq 10458.76 71.78 0.69% S&P 500 3852.97 28.83 0.75% FTSE 100 7585.19 31.10 0.41% Nikkei Stock 25846.57 129.71 0.50% Hang Seng 21091.86 298.75 1.44% Kospi 2265.78 9.80 0.43% SGX Nifty* 18138.50 27.5 0.15% *Jan contract USD/JPY 132.01-02 -0.46% Range 132.63 131.68 EUR/USD 1.0616-19 +0.11% Range 1.0634 1.0602 CBOT Wheat March $7.454 per bushel Spot Gold $1,855.81/oz 0.1% Nymex Crude (NY) $73.13 -$3.80 U.S. STOCKS
U.S. stocks rose Wednesday, as traders weighed fresh economic data that fanned fears of a looming recession.
The S&P 500 rose 28.83 points, or 0.8%, to 3852.97, by the end of the trading day while the Dow Jones Industrial Average increased 133.40 points, or 0.4%, to 33269.77. The tech-focused Nasdaq Composite Index climbed 71.78 points, or 0.7%, to 10458.76.
All three opened in the green before briefly turning negative in midmorning trading after manufacturing activity dropped to its lowest level since May 2020. The Labor Department also said Wednesday morning that job openings topped estimates in November, a sign that demand for labor remained strong in the final months of 2022.
ASIAN STOCKS
The Nikkei Stock Average was up 0.4% at 25821.70 in early trade as gains in auto and electronics makers helped offset losses in financial stocks. Investors were focusing on economic data and their implications for monetary policy. The Topix, a broader market index, was flat at 1868.07.
South Korea's benchmark Kospi gained 0.8% to 2273.63 in early trade, led by internet and semiconductor stocks. Investors have been calm to the latest U.S. Fed minutes, which suggest no rate cuts this year, as they largely met market expectations, Kiwoom Securities said. Memory-chip makers Samsung Electronics and SK Hynix rose, extending gains to another session after the government's plan to offer bigger tax breaks for semiconductor companies.
Hong Kong stocks rose in early trade, continuing the market's bullish start into 2023. The benchmark Hang Seng Index was up 2.7% at 21357.86, further advancing from its multimonth closing high on Wednesday. Chinese tech giants led gains. U.S. Tiger Securities analysts said the internet sector's rally could be sustained in the coming months, given the sector's high earnings sensitivity to overall consumer spending. Internet stocks also typically enjoy more price gains from general market sentiment recovery, they added.
Mainland Chinese stocks were higher, lifted by Beijing's pro-growth stance. The country's central bank on Wednesday said it would keep liquidity reasonably ample in 2023 to support the economy and vowed to step up financing support to spur domestic consumption and a stable property market. Consumer stocks were higher. Among the laggards were software and energy sector companies. The Shanghai Composite Index and the Shenzhen Composite Index were each 0.3% higher. The ChiNext Price Index was up 0.4%.
FOREX
Asian currencies consolidated against the USD in early Asian trade, but may strengthen on risk appetite prompted by overnight gains on Wall Street and early morning strength in regional equity markets. There appears to be token "risk on" sentiment and lower U.S. Treasury yields, said Mizuho Bank. USD/CNH edged 0.1% lower to 6.8936 and USD/KRW was down 0.1% at 1,270.17, while AUD/USD was little changed at 0.6835.
METALS
Gold edged higher, bolstered by Chinese demand, analysts said. Chinese buying seems to be the underlying driver behind the latest rally in gold prices, TD Securities said. The brokerage's tracking of positioning for the top 10 participants in China indicate a 100-ton increase in net long positions over the last two weeks, it said. Spot gold was up 0.1% at $1,855.81/oz.
OIL SUMMARY
Oil rose in the morning Asian session in a likely rebound after oil futures settled overnight at their lowest level in more than three weeks. The medium- to long-term outlook for oil seems more constructive following the recent change in China's Covid policy, ING strategists said. Also, ING's oil-balance analysis indicated a tightening in the market from 2Q 2023 through to year-end, which points to higher prices from 2Q onward, they added. Front-month WTI crude oil futures were 1.0% higher at $73.59/bbl; front-month Brent crude oil futures were 0.8% higher at $78.49/bbl.
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(END) Dow Jones Newswires
01-04-23 2215ET
