GLOBAL MARKETS DJIA 32254.86 -543.54 -1.66% Nasdaq 11338.35 -237.65 -2.05% S&P 500 3918.32 -73.69 -1.85% FTSE 100 7879.98 -49.94 -0.63% Nikkei Stock 28272.91 -350.24 -1.22% Hang Seng 19407.95 -517.79 -2.60% Kospi 2391.09 -28.00 -1.16% SGX Nifty* 17455.50 -162.5 -0.92% *March contract USD/JPY 136.39-40 +0.18% Range 136.79 135.82 EUR/USD 1.0588-91 +0.05% Range 1.0601 1.0579 CBOT Wheat March $6.534 per bushel Spot Gold $1,834.01/oz 0.3% Nymex Crude (NY) $75.55 -$1.11 U.S. STOCKS
Stocks fell Thursday after jobless claims showed that the labor market is still strong, complicating the picture for the Federal Reserve's rates path.
Stocks started the day higher, then turned down by midday. Losses picked up steam in the afternoon. The S&P 500 fell 1.8%, or 73.69 points, to 3918.32. The tech-focused Nasdaq Composite dipped 2.1%, or 237.65 points, to 11338.35. The Dow Jones Industrial Average dropped 1.7%, or 543.54 points, to close at 32254.86.
The Labor Department said Thursday that worker filings for U.S. unemployment benefits jumped more than 10% last week. But jobless claims are still historically low as demand for labor outstrips the number of people looking for work. The monthly jobs report, which is closely watched by investors, will be released Friday.
ASIAN STOCKS
Japanese stocks were down, dragged by falls in financial and electronics stocks, amid caution ahead of the Bank of Japan's policy decision and U.S. job data due later in the day. Today's BOJ policy decision is the last scheduled one for Gov. Haruhiko Kuroda, whose term is set to expire on April 8. The Nikkei Stock Average was down 0.8% at 28401.77.
South Korea's benchmark Kospi fell 1.1% to 2391.84 in early trade, dragged by technology and electronics stocks. Wall Street's losses overnight is weighing on sentiment as investors await U.S. monthly jobs data later Friday for clues about the Fed's future rate decisions. Latest data showing that South Korea swung back to a current account deficit in January on sluggish exports also set a downbeat mood for investors. Foreign investors were net set sellers. USD/KRW was 0.2% higher at 1,325.50.
Hong Kong's Hang Seng Index fell 1.7% to 19588.97, tracking Wall Street's sell-off overnight. The main theme has been risk-off, as U.S. equities dropped due to worries over the banking sector, Commerzbank analysts said. Investors have been concerned about the possibility of higher defaults due to the Fed's aggressive tightening, the analysts added. The worst performers on the HSI included JD.com, sliding 10.6%; Baidu, slipping 5.7%; and Geely Automobile, down 5.2%. The Hang Seng Tech Index was down 2.8% at 3819.33.
Chinese shares were lower in early trade, tracking overnight losses on Wall Street after U.S. jobless claims showed the labor market was still strong, indicating the Fed is likely to push rates higher than previously expected to cool down the economy. Property stocks and auto-related companies weighed on the market. Food and beverage producers were the bright spot in the market. The benchmark Shanghai Composite Index dropped 0.6% lower to 3255.51. The Shenzhen Composite Index also declined 0.6% and the ChiNext Price Index was 0.3% lower.
FOREX
The U.S. dollar rose to Y136.85 from Y135.96 after the Bank of Japan's decision to kept its interest-rate targets unchanged Friday at Gov. Haruhiko Kuroda's final meeting after 10 years on the job, but analysts expect policy to shift under his successor, Kazuo Ueda.
Forex markets are back to a data-dependent state where bad news is potentially good news, Ivan Asensio at Silicon Valley Bank said. With Fed officials entering a blackout period ahead of March's FOMC meeting, focus will be placed on data including payrolls tomorrow and then CPI, Asensio said. The jobless claims were slightly higher than expected and "that's bad news translating into good news."
METALS
Gold prices were higher in early Asian trade. The price of the yellow metal was likely rising amid a flight to safety and rumors that China-based traders were buying gold for U.S. dollar diversification purposes, said SPI Asset Management. "Gold's downshift to the low 1800s provides the buying opportunity many hoped for, but renewed upside inflation concerns and a more hawkish Fed, may not yet have run their course. Hence the next dollar direction will drive gold sentiment," it added. Spot gold was up 0.3% at $1,834.01/oz.
OIL SUMMARY
Crude oil prices were mixed in early Asian trade. Supply issues were in focus amid rising U.S. oil inventories and risks for Russian oil exports, ANZ analysts said. "While Russian supply looks resilient, we see nearly 1 million b/d of Russian oil supply at risk," they said. "Should this amount be withdrawn from the market, it would be difficult for the non-OPEC producing countries to compensate." The front-month WTI futures contract was flat at $75.71/bbl while the front-month Brent crude contract was up 0.1% at $81.70/bbl.
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(END) Dow Jones Newswires
03-09-23 2215ET
