GLOBAL MARKETS DJIA 32432.08 194.55 0.60% Nasdaq 11768.84 -55.12 -0.47% S&P 500 3977.53 6.54 0.16% FTSE 100 7471.77 66.32 0.90% Nikkei Stock 27485.65 8.78 0.03% Hang Seng 19619.88 52.19 0.27% Kospi 2419.12 9.90 0.41% SGX Nifty* 17054.50 41.5 0.24% *Mar contract USD/JPY 130.70-71 -0.65 Range 131.61 130.57 EUR/USD 1.0818-21 +0.19 Range 1.0821 1.0795 CBOT Wheat May $6.980 per bushel Spot Gold $1,958.68/oz 0.1% Nymex Crude (NY) $73.01 $3.75 US STOCKS
The Dow Jones Industrial Average climbed 0.6% after First Citizens agreed to buy much of Silicon Valley Bank, with the health of the banking sector remaining high on investors' agenda.
The S&P 500 rose 0.2% and the technology-heavy Nasdaq Composite slipped about 0.5%.
First Citizens' deal to buy large parts of Silicon Valley Bank lifted shares of U.S. regional banks, a group that has come under intensifying pressure following the SVB's collapse more than two weeks ago.
"It's a bit of a relief rally after the selloff on Friday. It's also the last week of the quarter, so I don't think we're going to see the same levels of volatility," said Michael Hewson, chief market analyst at CMC Markets.
ASIAN STOCKS
Japanese stocks were higher in early trade, led by gains in energy and financial stocks as concerns eased about the banking industry for now. Investors remain focused on any signs of weakness in the banking sector after First Citizens Bancshares bought large pieces of Silicon Valley Bank. USD/JPY was at 131.05, compared with 130.90 as of Monday's Tokyo stock-market close. The Nikkei Stock Average was up 0.2% at 27536.44.
South Korea's benchmark Kospi was 0.3% higher at 2416.71 in early trade, as financial and energy stocks advanced. Worries about the health of the global financial system eased after First Citizens Bancshares' agreement to buy much of failed Silicon Valley Bank. USD/KRW was 0.4% lower at 1,295.80. Banking stocks regained ground.
Hong Kong's Hang Seng Index opened 0.6% higher at 19688.31, as investor concerns over the health of the banking sector eased. Citi analysts noted that Asia's direct exposure to the affected financial institutions is very limited, but still reckon that the heightened risk aversion will likely impair capital flows. Most stocks were up on the HSI, with tech companies leading the gains. The Hang Seng Tech Index was 0.8% higher.
Chinese shares were broadly lower in early trade. The benchmark Shanghai Composite Index rose 0.2% to 3259.09, the Shenzhen Composite Index slipped 0.2% to 2115.87 and the ChiNext Price Index fell 0.4% to 2387.54. Bank stocks were mixed. Focus is likely to be on the PMI data due later in the week.
FOREX
Most Asian currencies strengthened against USD in the morning session amid improving risk appetite. Some pessimism has faded, said MUFG Bank senior currency analyst Jeff Ng in a research report, noting U.S. financial shares rose and Treasurys fell overnight as fears of broader contagion from the banking turmoil abated. This has helped USD to weaken, Ng added. USD/KRW edged 0.1% lower to 1,297.21 and USD/SGD dropped 0.2% to 1.3292, while AUD/USD gained 0.4% to 0.6678.
METALS
Gold prices were a tad higher in early Asian trade after retreating Monday. The precious metal was "punished by rising U.S. Treasury yields and lower safe-haven demand" at the start of the week, as the market mood, though still cautious, turned more positive on the news that U.S. lender First Citizens Bancshares agreed to acquire large pieces of the failed Silicon Valley Bank, "a move that could help reduce elevated uncertainty in the banking system," DailyFX strategist Diego Colman said. If the jitters about the banking sector continue to ease, gold could give back some of its recent gains, Oanda senior market analyst Craig Erlam said in a note. Spot gold rose 0.1% to $1,958.68/oz.
OIL SUMMARY
Crude oil prices were mixed in early Asian trade. The focus could be on supply issues, as Russia's seaborne crude-oil flows have fallen to 3 million barrels a day and as European natural gas prices are higher due to strikes in France, Saxo market strategist Charu Chanana said in a note. Meanwhile, Exxon Mobil said it will begin to shut down a refinery in France that represents 20% of the country's refining capacity amid widespread protests, ANZ analysts said in a report. The front-month WTI futures contract was flat at $72.81/bbl while the front-month Brent crude contract fell 0.3% to $77.91/bbl.
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(END) Dow Jones Newswires
03-27-23 2315ET
