GLOBAL MARKETS DJIA 33980.32 -171.69 -0.50% Nasdaq 12938.12 -164.43 -1.25% S&P 500 4274.04 -31.16 -0.72% FTSE 100 7515.75 -20.31 -0.27% Nikkei Stock 28958.40 -264.37 -0.90% Hang Seng 19896.39 -26.06 -0.13% Kospi 2502.52 -13.95 -0.55% SGX Nifty* 17942.00 -26 -0.14% *August contract USD/JPY 134.88-89 -0.14% Range 135.18 134.74 EUR/USD 1.0183-86 +0.06% Range 1.0195 1.0173 CBOT Wheat Sept $7.632 per bushel Spot Gold $1,766.04/oz 0.3% Nymex Crude (NY) $87.70 $1.17 U.S. STOCKS
U.S. stocks finished lower on Wednesday after investors reviewed another batch of earnings from retailers and studied the latest signals from the Federal Reserve about future interest-rate moves.
Shares recovered some lost ground midafternoon just after the Fed published the minutes from its July meeting, but they tailed off again to finish the session. At the closing bell, the S&P 500 was down 31.16 points, or 0.7%, at 4274.04. The Dow Jones Industrial Average lost 171.69, or 0.5%, to 33980.32. The Nasdaq Composite declined 164.43, or 1.3%, to 12938.12.
ASIAN STOCKS
Japanese stocks were lower, dragged by falls in tech and electronics stocks, as caution continues over the Fed's tightening. Recruit Holdings was down 2.7% and Lasertec was 2.1% lower. The insurance sector was higher after gains in U.S. Treasury yields overnight. Meanwhile, Takeda Pharmaceutical was up 0.8%, following a report its dengue fever vaccine is expected to be approved in Indonesia soon. Investors were focusing on geopolitical developments around Taiwan. The Nikkei Stock Average was down 1.1% at 28909.58.
South Korea's benchmark Kospi fell 0.9% to 2492.95 in early trade, dragged by electronics, auto and airline stocks. Wall Street's decline overnight after release of the Fed's minutes from its July policy meeting was dampening investor sentiment. The Fed minutes showed officials agreed last month to keep raising rates enough to slow the economy until inflation is clearly decelerating. Home appliance giant LG Electronics was down 2.9%. Memory-chip maker SK Hynix fell 1.8%. Auto parts suppliers Mando and Hyundai Mobis were 3.2% and 3.1% lower, respectively, as car maker Hyundai Motor retreated 2.1%. Budget airline Jin Air dropped 2.1%.
Hong Kong's Hang Seng Index fell 0.4% to 19843.76 on possible profit-taking after swinging between gains and losses in early trade. Asian stocks looked set for a negative open, said Yeap Jun Rong, market strategist at IG. The movements in Wall Street overnight could drive some profit-taking today, the strategist added. Country Garden slipped 4.0% after saying before market open on Thursday that it expected 1H net profit to be between CNY200 million and CNY1.0 billion versus a CNY15 billion profit for the same period a year earlier. Other decliners included Shenzhou International Group, which was down 3.1% and Longfor Group 1.6% lower. The Hang Seng Tech Index was down 0.6% at 4211.70.
Chinese shares were lower in early trade, amid concerns over the rising number of Covid-19 cases in the country. The benchmark Shanghai Composite Index slipped 0.2% to 3285.21, the Shenzhen Composite declined 0.4% to 2234.10 and the ChiNext Price Index was 0.1% lower at 2774.68. Stocks of utility companies could be closely watched in the near term. "An unusually hot and dry summer has been stressing power supply and leading to production cuts in certain provinces and some energy-intensive sectors, although we are unlikely to see a repeat of last year's power outages and severe production disruptions," Goldman Sachs analysts said in a note. Shanghai Electric Power slipped 0.4% and Zhejiang Zheneng Electric Power rose 0.6%.
FOREX
Asia currencies were rangebound against USD in the morning Asian session, but may weaken amid risk-off sentiment. The overnight drop in U.S. equity markets was likely to have a negative spillover effect on risk sentiments across Asia during the day, MUFG Bank currency analyst Sophia Ng said in a research report. Asia ex-Japan currencies were also expected to be under pressure following last night's rise in the USD Index, the analyst added. USD/KRW was little changed at 1,315.27 while USD/JPY dropped 0.1% to 134.86 and AUD/USD was down 0.1% at 0.6928.
METALS
Gold prices were higher in early Asian trade, after weakening overnight on a strong USD and rising treasury yields. However, prices for the precious metal moved up in electronic trading shortly after the release of the Fed minutes. "Although gold is seen as a hedge against inflation, rising U.S. interest rates dull non-yielding bullion's appeal," Phillip Securities analysts said in a note. The precious metal will likely trade within a limited range for now, with markets keeping an eye on next week's Jackson Hole Symposium, Oanda senior market analyst Edward Moya said in a note. Spot gold was 0.3% higher at $1,766.04/oz.
OIL SUMMARY
Oil prices were lower in early Asia trade, after rising overnight on U.S. data which showed a more than seven million-barrel weekly drop in domestic supplies. "It was a bullish EIA report as US crude exports rose to a record as Europe scrambles for alternatives to Russian oil," Oanda's senior market analyst Edward Moya said in a markets commentary. He reckoned that the oil market will remain tight, given that there is limited spare capacity and hopes of a revival of the Iran nuclear deal appear to be dwindling. "It looks like oil needs to head higher," he said. Front-month WTI crude-oil futures were down 0.6% at $87.56/bbl. Brent was 0.5% lower at $93.16/bbl.
TOP HEADLINES Fed Officials See Need for Continued Rate Increases, but Less Certainty Over Destination U.S., Taiwan to Begin Formal Talks for Trade, Investment Pact This Fall Iran Renews Demands for U.S. Guarantees in Nuclear Deal Talks U.S. Shipping Backups Shift to East Coast and Gulf Coast Ports China to Join Russia Military Exercises China's Scorching Heat Leads to Power Cuts, Factory Disruptions U.S. Oil and Gasoline Inventories Drop Sharply Oil Giants Must Face Climate-Liability Suits in States, Appeals Court Rules Amazon Seeks Top Film Executive Amid Expansion of Entertainment Arm CVS, Walgreens and Walmart Ordered to Pay $650 Million to Ohio Counties in Opioid Case Moderna Names New CFO After Hasty Departure of Predecessor Amazon Tests TikTok-Like Feed in App ASX's Full-Year Profit Rises 5.7%, Reports High Listing Activity Country Garden Holdings' Shares Fall After Warning of First-Half Profit Slump Auckland Airport Conservative on Pace of Travel Recovery, Reports Second Ever Loss Sezzle Cuts Cash Burn as It Targets Profitability by End of 2022 Singapore Exchange Posts Highest Revenue Since Listing Treasury Wine Annual Profit Rises, Expects Further Growth Medibank Profit Falls 11% Amid Market Volatility Israel and Turkey to Restore Ties After Yearslong Tension Over Palestinians U.K. Government to Pay Thousands of People Who Were Infected by Tainted Blood
(END) Dow Jones Newswires
08-17-22 2315ET
