GLOBAL MARKETS DJIA 33973.01 268.91 0.80% Nasdaq 10931.67 189.04 1.76% S&P 500 3969.61 50.36 1.28% FTSE 100 7724.98 30.49 0.40% Nikkei Stock 26448.26 2.26 0.01% Hang Seng 21649.36 213.31 1.00% Kospi 2366.75 7.22 0.31% SGX Nifty* 18007.00 57 0.32% *Jan contract USD/JPY 131.55-56 -0.70% Range 132.52 131.50 EUR/USD 1.0767-70 +0.11% Range 1.0777 1.0751 CBOT Wheat March $7.400 per bushel Spot Gold $1,877.05/oz 0.1% Nymex Crude (NY) $77.64 $2.52 U.S. STOCKS
U.S. stocks rose Wednesday as investors grew more confident that Thursday's inflation data would lead to more-muted increases in interest rates.
The S&P 500 climbed 50.36 points, or 1.3%, to 3969.61. The Dow Jones Industrial Average added 268.91 points, or 0.8%, to 33973.01. The technology-focused Nasdaq Composite Index advanced 189.04, or 1.8%, to 10931.67. All three indexes rose on Tuesday as well, and the Nasdaq posted its fourth consecutive gain.
Investors' attention for the remainder of this week will likely focus on the December inflation report, which the Labor Department will release later today. Economists surveyed by The Wall Street Journal expect consumer prices to have risen 6.5% annually, down from 7.1% a month earlier.
ASIAN STOCKS
The Nikkei Stock Average was flat at 26451.42 in early trade, as gains in electronics stocks help offset losses in shipping and utility stocks. Investors were focusing on economic data and their implications for monetary policy. U.S. inflation figures due later in the day would be closely watched. The broader market index Topix was up 0.1% at 1903.25.
South Korea's benchmark Kospi gained 0.2% to 2364.33 as renewable energy and battery stocks advanced. Risk appetite was growing ahead U.S. inflation data later in the day as investors expect price growth to ease, which could lead the Fed to slow its pace of policy tightening. U.S. electric-vehicle maker Tesla's plan to expand its Texas plant was sending battery related stocks higher.
Hong Kong's Hang Seng Index rose 0.8% to 21605.09 in early trade, tracking Wall Street gains. Markets continue to bet on a further slowdown in U.S. inflation, and the probability of a 50bp rate increase by the Fed at its upcoming meeting has risen to 77%, CMC Markets said. The Hang Seng Tech Index was up 0.6% at 4572.65.
Chinese shares opened higher, tracking Wall Street gains overnight as hopes that Thursday's U.S. inflation data will lead to more muted Fed rate increases buoyed global stock markets. Finance and auto-related industries were outperforming early on. Property stocks were down, retreating after a rally spurred by Beijing's support to revive the embattled real-estate sector. The Shanghai Composite Index rose 0.2% to 3167.27, the Shenzhen Composite Index was up 0.2% and the ChiNext Price Index was 0.4% higher.
FOREX
Asian currencies were mixed against USD in the morning Asian session ahead of the U.S. December CPI report due out later in the day. Any downside surprises in the data would probably buoy markets and support USD weakness, MUFG Bank said, noting that economists expect core CPI to rise 0.3% on month. Current market expectations were for two more Fed rate increases in 1Q and a terminal rate below 5%, it added. USD/KRW rose 0.3% to 1,245.53 while USD/SGD edged 0.1% lower to 1.3298 and AUD/USD was up 0.2% at 0.6918.
METALS
Gold prices were a tad higher ahead of the U.S. December inflation report due later in the day. Gold prices recently hit an eight-month high, and its rally could extend further if disinflation trends remain firmly in place, Oanda said. Lower inflation could indicate that the U.S. Federal Reserve will ease its tight monetary policy stance, which is typically viewed as positive for gold prices, he said. Spot gold was up 0.1% to $1,877.05/oz.
OIL SUMMARY
Crude oil rose in early Asian trade as the demand outlook brightens. "Unsurprisingly, as the world's 2nd biggest oil consumer [China] emerges from a three-year Covid cocoon, oil prices continue to rise after this year's balmy weather-inspired crush on the energy complex," SPI Asset Management said. It expected oil prices to remain supported as mobility in China returns to normal. The front-month WTI contract rose 0.4% to $77.72/bbl, while the front-month Brent crude contract was up 0.4% at $82.97/bbl.
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(END) Dow Jones Newswires
01-11-23 2215ET
