GLOBAL MARKETS DJIA 32560.60 316.02 0.98% Nasdaq 11860.11 184.57 1.58% S&P 500 4002.87 51.30 1.30% FTSE 100 7536.22 132.37 1.79% Nikkei Stock 27440.73 495.06 1.84% Hang Seng 19742.47 483.71 2.51% Kospi 2413.49 25.14 1.05% SGX Nifty* 17169.50 25.5 0.15% *Mar contract USD/JPY 132.32-33 -0.13% Range 132.77 132.27 EUR/USD 1.0766-69 -0.03% Range 1.0780 1.0766 CBOT Wheat May $6.832 per bushel Spot Gold $1,943.10/oz 0.2% Nymex Crude (NY) $69.33 $1.69 US STOCKS
Increased investor optimism about the banking system helped lift U.S. stocks, with shares of regional banks including First Republic Bank at the forefront of the rally.
The S&P 500 gained 1.3%, the Dow Jones Industrial Average rose 1%, and the tech-focused Nasdaq Composite Index climbed 1.6%.
The indexes advanced ahead of Wednesday's interest-rate decision from the Federal Reserve. There is unusual amount of uncertainty among investors about what the Fed will do as it attempts to balance financial strains against stubbornly high inflation.
"The equity market is not pricing in a full banking crisis," said Seema Shah, chief global strategist at Principal Asset Management. "There's not panic setting into that investor space, which is certainly a very important thing."
ASIAN STOCKS
Japanese stocks were broadly higher in morning trade, led by especially strong gains in financial and shipping stocks as concerns eased for now about the global banking sector. Investors will be focusing on the Fed's policy decision later in the day as well as any signs of weakness in the banking sector. The Nikkei Stock Average was up 1.8% at 27436.49.
South Korea's benchmark Kospi was 0.8% higher at 2408.06 in early trade, led by gains in battery and financial stocks. Sentiment was supported by easing concerns over the global banking system after U.S. Treasury Secretary Janet Yellen's pledge to support depositors of troubled banks. USD/KRW was 0.6% lower at 1,303.50.
Hong Kong's Hang Seng Index rose 1.5% to 19551.79 in morning trade amid a risk-on mood. Investor sentiment has improved as more traders place bets for the Fed to take a dovish turn in the upcoming FOMC meeting in order to stabilize the turmoil shaking the banking sector, said CMC Markets analyst Tina Teng in a note.
Chinese stocks were higher in morning trade, picking up from a muted trading pattern in recent sessions. The benchmark Shanghai Composite Index was up 0.7% at 3277.83, while the Shenzhen Composite Index gained 0.5% to 2097.24. The tech-heavy ChiNext Price Index rose 0.4% to 2345.62. Many analysts point out that the market's upturn is likely to continue in the longer run. They note that A-shares' recent losses have likely priced in most risk factors, such as Fed-tightening worries and slower-than-expected reopening-driven consumption rebound in China. A-shares may also appear more attractive against the backdrop of rising overseas risk after Credit Suisse's collapse, analysts at Galaxy Securities said.
FOREX
Asian currencies consolidated against USD in the morning session ahead of the FOMC meeting's outcome later today. Markets are presently pricing in 85% chance of a 25bp rate increase by the Fed, said MUFG Bank's senior currency analyst Jeff Ng in a research report. A dovish increase or a hawkish pause may continue to maintain some uncertainty, and the onus is on Fed Chairman Powell providing certainty to markets, Ng added. USD/KRW rose 0.2% to 1,306.81 while USD/SGD was little changed at 1.3370 and AUD/USD gained 0.2% to 0.6681.
METALS
Gold prices were slightly higher in early Asian trade in a possible technical rebound after posting the largest one-day loss in about six weeks overnight as nerves over the stability of the banking sector cooled. DailyFX said the outlook for the precious metal remains positive despite the recent shift lower, and focus will be on the FOMC meeting, which will guide gold's next move. "A more dovish Federal Reserve will allay further rate-hike fears while worries that the current global banking crisis may flare up again, giving the precious metal an ongoing safety bid," said DailyFX senior strategist Nick Cawley in a note. ?Spot gold rose 0.2% to $1,943.10/oz.
OIL SUMMARY
Oil prices were lower in early Asian trade. Commerzbank analysts said oil prices may be pressured in the short term, partly due to energy strikes at French refineries that would likely reduce oil demand in Europe. "The marked appreciation of the US dollar in the meantime, which profited from its role as a safe haven, likewise generated pressure on oil prices," they said in a note. Front-month WTI futures were 0.4% lower at $69.38/bbl; front-month Brent fell 0.3% to $75.08/bbl.
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(END) Dow Jones Newswires
03-21-23 2315ET
