GLOBAL MARKETS DJIA 34108.64 103.60 0.30% Nasdaq 11256.81 113.08 1.01% S&P 500 4019.65 29.09 0.73% FTSE 100 7502.89 56.92 0.76% Nikkei Stock 28171.51 216.66 0.78% Hang Seng 19688.06 91.86 0.47% Kospi 2391.17 18.77 0.79% SGX Nifty* 18807.00 106.0 0.57% *Dec contract USD/JPY 135.57-58 -0.01% Range 135.74 135.32 EUR/USD 1.0630-33 -0.02% Range 1.0640 1.0621 CBOT Wheat Dec $7.286 per bushel Spot Gold $1,808.70/oz -0.1% Nymex Crude (NY) $75.42 $2.25 US STOCKS
U.S. stock indexes climbed and bond yields fell after fresh data showed inflation eased last month, a welcome development for investors who have been anxious about rising prices for much of the year.
The S&P 500 added 0.7%, paring some of its stronger gains from earlier in the session. The Nasdaq Composite rose 1%, while the Dow Jones Industrial Average added 0.3%.
The latest data on the consumer-price index showed that inflation rose 7.1% in November from a year ago, compared with 7.7% in October--and cooler than economists surveyed by The Wall Street Journal had expected. Core inflation, which excludes food and energy, increased by 6%, softening from 6.3%.
"I'm happily surprised. We have cooler headline inflation and cooler core," said Fahad Kamal, chief investment officer at Kleinwort Hambros.
Meanwhile, rising expectations that the Federal Reserve could slow its plans for tightening financial conditions because of inflation easing have also driven stocks higher.
ASIAN STOCKS
Japanese stocks were higher in early trade, led by gains in tech and electronics stocks, as concerns eased about U.S. inflation and Fed's aggressive tightening. No big-cap stocks were rising or falling more than 2.5%, as investors refrained from making aggressive bets ahead of the Fed's policy decision later in the global day. The Nikkei Stock Average was up 0.4% at 28069.73.
South Korea's benchmark Kospi rose 0.7% to 2388.99 in early trade, led by biotech and internet stocks. Wall Street's gains overnight on cooler-than-expected U.S. inflation data buoyed investor sentiment. USD/KRW fell 1.1% to 1,292.00 on easing concerns about the Fed's pace of policy tightening as investors await its rate decision later in the day.
Hong Kong stocks advanced in early trade, following broad gains in Asian equities after latest U.S. data showed inflation eased last month. The benchmark Hang Seng Index gained 0.5% to 19689.13. IG Research analyst Yeap Jun Rong said investor sentiment may remain cautious in the near term, as "positive headlines over Covid-19 reopening could run the risk of being replaced by news of Covid-19 spreads as restrictions eased." Sentiment is also likely to remain on hold ahead of the Fed meeting outcome due later in the global day, IG added.
Chinese shares opened broadly higher in early trade, tracking Wall Street gains overnight as softer-than-expected inflation data spurred hopes of slower Fed rate hikes. Chip makers and consumer companies were outperforming the market. The Shanghai Composite Index was 0.1% higher at 3178.55 and the Shenzhen Composite Index was also up 0.1%. The ChiNext Price Index opened flat at 2384.70.
FOREX
NZD/USD was at 0.6464 early Wednesday, having surged higher as the U.S. dollar crumbled in the wake of soft CPI data there, ANZ said. "This is likely just the first leg of volatility to be expected this week, with the Fed decision tomorrow," ANZ said. Markets are now approaching the meeting's conclusion with a very dovish mindset, it said. "That'll be fine if the Fed are dovish, but that doesn't align at all well with recent comms, especially with US services inflation still rising, and the labor market so tight, and we may be in for a bumpy ride."
METALS
Gold was a tad lower in early Asian trade. The price of the precious metal eased following a rally due to a slower-than-expected rise in U.S. inflation, which sparked hopes that the Federal Reserve will begin to reduce the pace of interest-rate hikes, Oanda market analyst Edward Moya said in a note. Higher rates typically pressure gold prices. The metal should remain comfortably above $1,800/oz ahead of the FOMC decision due later in the day, and could have a path toward $1,861/oz if the central bank abandons its hawkish tone completely, he said. Spot gold was recently down 0.1% at $1,808.70/oz.
OIL SUMMARY
Crude oil fell in early Asian trade following sharp gains the previous day. The commodity rose Tuesday amid optimism about China's gradual reopening and news of delays in restarting TC Energy's Keystone pipeline following a leak last week, although persistent concerns about slowing global economic growth and the continued rise of Covid cases could weigh. The pace of China's reopening looks likely to be accelerated, which would be good news for oil demand, Goldman Sachs analysts said in a note. They expect demand to remain firm going into next year, thanks to China's reopening and the recovery in international travel. The front-month WTI contract slipped 0.2% to $75.17/bbl, while front-month Brent futures were down 0.3% at $80.37/bbl.
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(END) Dow Jones Newswires
12-13-22 2215ET
