GLOBAL MARKETS DJIA 33174.07 -112.18 -0.34% Nasdaq 13129.96 -125.58 -0.95% S&P 500 4259.52 -18.36 -0.43% FTSE 100 7099.09 -91.63 -1.27% Nikkei Stock 25068.41 -621.99 -2.42% Hang Seng 20308.99 -581.27 -2.78% Kospi 2656.57 -23.75 -0.89% SGX Nifty* 16515.50 -54.5 -0.33% *March contract USD/JPY 116.25-26 +0.10% Range 116.36 116.11 EUR/USD 1.0994-97 +0.05% Range 1.1020 1.0982 CBOT Wheat March $10.736 per bushel Spot Gold $1,994.83/oz -0.1% Nymex Crude (NY) $106.23 -$2.47 U.S. STOCKS
U.S. stocks declined and oil prices reversed early gains, as cease-fire talks between Russia and Ukraine yielded little progress and inflation readings reached a 40-year high.
The Nasdaq Composite Index fell 125.58 points, or almost 1%, to close Thursday at 13129.96. The S&P shed 18.36 points, or about 0.4%, to 4259.52. The Dow Jones Industrial Average declined 112.18 points, or 0.3%, to 33174.07.
ASIAN STOCKS
Japan's Nikkei Stock Average was 1.1% lower at 25406.05, dragged by falls in auto and electronics stocks, as uncertainty persisted over the war in Ukraine and its impact on global trade. Nissan Motor sagged 3.9% and Lasertec fell 3.6%. Investors remain focused on headlines on Ukraine and commodity prices after the top diplomats of Russia and Ukraine failed to reach a cease-fire agreement.
South Korea's Kospi fell 0.3% to 2671.97 in early trade, tracking declines on Wall Street overnight, amid fears over the continuing Russia-Ukraine war and inflation. Tech and energy stocks were leading the Kospi's retreat. Little progress in the latest round of Russia-Ukraine cease-fire talks and the U.S. inflation reaching another 40-year high in February were sapping appetite for riskier assets like equities. Sentiment was also weighed by local trade data showing that Korea's current account surplus narrowed sharply in January due to a surge in imports amid higher oil and other raw-material prices.
Hong Kong's Hang Seng Index slid 2.8% to 20304.82 in morning trade, tracking Wall Street losses overnight as cease-fire negotiations between Russia and Ukraine yielded little progress. The Hang Seng TECH Index slumped 5.9% to 4174.79. Investors were concerned over tightening U.S. regulatory control over U.S.-listed Chinese stocks, KGI Research said. JD.com's H-shares slid 13.5% after the company reported a loss for 2021 on Thursday. Among the worst performers on the HSI were Meituan, which dropped 7.8%, NetEase, which fell 6.9%, and Sunny Optical Technology, down 6.8%.
Chinese stocks were lower in early trading, amid poor sentiment fueled by fears of a prolonged Ukraine war after talks between Russia and Ukraine failed to stop Russian attacks, IG said. "The ever-changing dynamics and largely unpredictable nature of the conflict may refrain some market participants from buying," IG said; "There seems to be a lack of positive catalysts overnight to spur risk-taking." Many sectors are falling, including liquor-makers, renewables, auto makers and banks. The Shanghai Composite Index declined 1.1% to 3258.84, the Shenzhen Composite Index fell 1.2% to 2134.49 and the ChiNext Price Index shed 1.0% to 2610.14.
FOREX
Most Asian currencies weakened against the dollar amid risk-off sentiment driven by the lack of progress in cease-fire talks between Russia and Ukraine and losses in regional equity markets. For next week, USD was likely to be firm into the FOMC meeting on March 15-16, DBS Research said. Following last Friday's robust U.S. jobs report and Thursday's stronger CPI inflation print, the Fed should kick off its rate-rise cycle with a 25bps increase, DBS Research added. USD/KRW rose 0.3% to 1,232.65, AUD/USD fell 0.2% to 0.7339 while USD/SGD was little changed at 1.3595.
METALS
Gold fell slightly in early Asian trade, though increased risk aversion amid the ongoing Ukraine invasion may support prices. "Wall Street is going back into risk aversion mode as Russia seems poised to continue to move forward with its attack on Ukraine," Oanda said. High-level talks between Russia and Ukraine on Thursday failed to reach a cease-fire agreement. Gold prices were also being helped by the high U.S. inflation, which is raising stagflation fears, Oanda said. However, ANZ outpointed that a stronger U.S. dollar was putting downward pressure on gold. Spot gold was 0.1% lower at $1,994.83 an ounce.
OIL SUMMARY
Oil gained in early Asian trade amid the U.S. and U.K.'s sanctions on Russian crude, risking a supply shock in the market, ANZ said. "At stake is 5 million barrels/day of oil, which will be difficult to replace," it says. OPEC members are struggling to increase their oil output, given limited spare capacity with only Iraq and Saudi Arabia likely able to reasonably boost production, ANZ added. Front-month Brent rose 0.1% to $109.47/bbl while front-month WTI was 0.5% higher at $106.58/bbl.
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(END) Dow Jones Newswires
03-10-22 2215ET
