GLOBAL MARKETS DJIA 33704.10 186.45 0.56% Nasdaq 10742.63 106.98 1.01% S&P 500 3919.25 27.16 0.70% FTSE 100 7694.49 -30.45 -0.39% Nikkei Stock 26459.24 283.68 1.08% Hang Seng 21599.97 268.51 1.26% Kospi 2357.35 6.04 0.26% SGX Nifty* 18009.00 23 0.13% *Jan contract USD/JPY 132.53-54 +0.22% Range 132.59 132.07 EUR/USD 1.0732-35 -0.01% Range 1.0747 1.0727 CBOT Wheat March $7.310 per bushel Spot Gold $1,867.83/oz Unch. Nymex Crude (NY) $75.03 $0.40 US STOCKS
U.S. stocks rose, even as investors parsed remarks from Federal Reserve officials indicating a higher-for-longer outlook for interest rates.
The S&P 500 rose 0.7% while the Dow Jones Industrial Average edged up 0.6%. The technology-heavy Nasdaq Composite Index advanced 1%.
Fed Chairman Jerome Powell said the central bank is strongly committed to lowering inflation, even though interest-rate increases to restrain economic growth could fuel political blowback.
"The critical question on everyone's mind right now is: When are we going to see the Fed's tightening peak?" said Stephen Innes, managing partner at SPI Asset Management. "We keep seeing the Fed come out and make these really hawkish comments, but the market isn't really pricing that in."
ASIAN STOCKS
Japanese stocks were higher in morning trade, led by electronics makers as hopes continue for the Fed's less aggressive tightening. Investors are focusing on bond yields, economic data and their implications for monetary policy. The Nikkei Stock Average was up 0.8% at 26395.11.
South Korea's benchmark Kospi gained 0.3% to 2357.35 in early trade as defense and industrial-material stocks advanced. Foreigners were net buyers, driving gains in morning trading.
Hong Kong's Hang Seng Index rose 0.8% to 21506.64 in early trade, tracking Wall Street gains overnight. Investors believe inflation will cool further in December, encouraging the Fed to reach the peak of its rate-increase cycle much earlier than the central bank's current projection, said Tina Teng, markets analyst at CMC Markets, in an email. The Hang Seng TECH Index was up 0.9% at 4597.91.
Chinese shares were mixed in early trading as the reopening rally softened amid soaring Covid infections and the prospect of an economic recession. Auto makers and consumer-related companies weighed on the market. Property stocks were outperforming, reclaiming some of their recent losses. The Shanghai Composite Index edged up 0.1% to 3172.38, the Shenzhen Composite Index was flat and the ChiNext Price Index was down 0.1%.
FOREX
JPY weakened against most G-10 and Asian currencies in the morning Asian session amid risk-on sentiment. Markets appear optimistic that upcoming data may show a softening U.S. CPI reading, which could help moderate any further rate increases from the Fed, MUFG Bank's senior currency analyst Jeff Ng said in a research report. The U.S. CPI report is due out Thursday. USD/JPY edged 0.1% higher to 132.30, AUD/JPY gained 0.2% to 91.20 and SGD/JPY was up 0.1% at 99.33.
METALS
Gold prices were flat in early trade. The price of the metal has held steady as traders become more optimistic that the U.S. Federal Reserve won't continue raising rates rapidly, Edward Moya, senior market analyst at Oanda, said in a note. Fed Chair Jerome Powell's recent appearance at a Riksbank event turned out to be a nonevent as he didn't focus on monetary policy, which means that gold's next move could wait until the next inflation report, the analyst added. Spot gold was flat at $1,867.83/oz.
OIL SUMMARY
Crude-oil prices were lower in early Asian trade, as traders parsed Fed officials' comments that the central bank will have to raise interest rates above 5.0% to combat persistent inflation, ANZ analysts said in a note. However, prices could remain supported on prospects of stronger demand from China following the country's earlier-than-expected reopening from Jan. 8, they added. The front-month contract for WTI futures was down 0.6% at $74.68/bbl, while Brent crude futures fell 0.6% to $79.66/bbl.
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(END) Dow Jones Newswires
01-10-23 2218ET
