GLOBAL MARKETS DJIA 32920.46 -281.76 -0.85% Nasdaq 10705.41 -105.11 -0.97% S&P 500 3852.36 -43.39 -1.11% FTSE 100 7332.12 -94.05 -1.27% Nikkei Stock 27230.06 -297.06 -1.08% Hang Seng 19544.29 93.62 0.48% Kospi 2354.96 -5.06 -0.21% SGX Nifty* 18368.50 50.5 0.28% *Dec contract USD/JPY 136.07-08 -0.45% Range 136.71 135.78 EUR/USD 1.0606-09 +0.20% Range 1.0621 1.0583 CBOT Wheat March $7.534 per bushel Spot Gold $1,792.40/oz Unch Nymex Crude (NY) $74.30 -$1.81 U.S. STOCKS
Stocks fell again Friday, with investors forced to wrestle anew with the prospect of higher-for-longer interest rates and the potential for recession.
The S&P 500 dropped 43.39 points, or 1.1%, to 3852.36 a day after falling 2.5%. Each of the index's 11 sectors finished in the red.
The Dow Jones Industrial Average fell 281.76 points, or 0.8%, to 32920.46. The technology-focused Nasdaq Composite slid 105.11 points, or 1%, to 10705.41. All three major indexes fell at least 1.5% this week, with technology stocks and other growth-sensitive segments suffering the most.
ASIAN STOCKS
Japanese stocks were lower in early trade, dragged by falls in auto and energy stocks, as concerns continued about the global economic outlook amid policy tightening by central banks. Toshiba Corp. was down 4.9% following a report that a group led by Japan Industrial Partners may lower its buyout valuation from the planned Y2.2 trillion. Lawson was 3.0% lower after its Seijo Ishii supermarket unit withdrew its application for a Tokyo Stock Exchange listing. Investors were focusing on economic data and Bank of Japan's two-day policy meeting concluding Tuesday. The Nikkei Stock Average was down 1.1% at 27225.20.
South Korea's benchmark Kospi was down 0.7% at 2343.02 in early trade, as auto and battery stocks retreated. Foreign and institutional investors were net sellers. Signs of a potential U.S. economic recession amid hawkish Fed policy tightening were fueling risk-aversion sentiment, weighing on riskier assets, NH Futures said. The won weakened versus the greenback, with USD/KRW 0.4% higher at 1,310.50.
Hong Kong's benchmark Hang Seng Index rose 0.6% to 19567.73 in early trade, boosted by the Chinese tech sector. Sentiment on the industry was buoyed by hopes of easing regulatory pressure following supportive signals from the Chinese leadership at the Central Economic Work Conference. Top gainers among blue chips were Meituan, up 3.9%, and Alibaba Group, which was 2.5% higher. Among laggards are Sands China and Galaxy Entertainment, down 2.5% and 1.8%, respectively, after casino operators shed light on their investment plans as part of the gaming license renewal terms.
Mainland Chinese shares were broadly lower in early trade, on concerns over the current faltering economy, despite Beijing's pro-growth stance and decision to focus on reviving growth momentum in 2023 at the annual Central Economic Work Conference. Property and education-related stocks were leading the gains. Laggards include consumption sector stocks such as Yonghui Superstores, which was down 2.7% and biotech companies like BeiGene, which was 2.6% lower. The Shanghai Composite Index and the Shenzhen Composite Index were each down by 0.1%, while the ChiNext Price Index was flat at 2372.93.
FOREX
The expectation of central banks reducing the pace of monetary tightening has boosted confidence and risk appetite, with the NZD/USD appearing to be regaining momentum, Kiwibank said. "Over the next three months, we expect that the Kiwi dollar will remain well supported into the 0.6500 territory and beyond--perhaps even into the 0.6700/0.6800 levels," it says. The NZD/USD was recently at 0.6377, underpinned by the RBNZ being more aggressive on interest rates than most central banks. Still, Kiwibank said the updraft for the NZD/USD won't last as the global economy weakens and commodity prices decline. "The USD will be favored once more as a safe haven currency," it said. "We may see the Kiwi head as low as 0.6150 again."
METALS
Gold prices were flat in early Asian trade. A wave of risk aversion toward the end of last week boosted the U.S. dollar and Treasury yields, weighing on the price of the precious metal, Oanda said. Gold could slide further, falling next toward the $1,760/oz level, it added. Spot gold was flat at $1,792.40/oz.
OIL SUMMARY
Oil prices were higher in early Asian trade amid a mixed outlook. Despite unconfirmed reports on rising number of Covid cases and fatalities in China, the demand outlook for oil could brighten as Beijing's official messaging is returning to a focus on economic growth as a priority for 2023, said Saxo Capital. The U.S. was also starting to replenish its strategic petroleum reserves after draining it for months, it added. The front-month WTI contract was up 1.5% to $75.40/bbl, while Brent crude contract rose 1.6% to $80.31/bbl.
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(END) Dow Jones Newswires
12-18-22 2215ET
