GLOBAL MARKETS DJIA 33696.85 -431.20 -1.26% Nasdaq 11855.83 -214.76 -1.78% S&P 500 4090.41 -57.19 -1.38% FTSE 100 8012.53 14.70 0.18% Nikkei Stock 27552.18 -144.26 -0.52% Hang Seng 20861.38 -126.29 -0.60% Kospi 2458.45 -17.03 -0.69% SGX Nifty* 17969.50 -98.5 -0.55% *Feb contract USD/JPY 134.54-55 +0.45% Range 134.69 133.94 EUR/USD 1.0651-54 -0.18% Range 1.0680 1.0650 CBOT Wheat March $7.650 per bushel Spot Gold $1,832.41/oz -0.2% Nymex Crude (NY) $78.08 -$0.51 U.S. STOCKS
Stocks fell Thursday after inflation and jobs data came in stronger than expected, increasing concerns that the end of the Federal Reserve's tightening campaign is nowhere near.
The S&P 500 dropped 57.19 points, or 1.4%, to 4090.41. The Dow Jones Industrial Average slipped 431.20 points, or 1.3%, to 33696.85 while the tech-focused Nasdaq Composite lost 214.76 points, or 1.8%, to 11855.83.
Supplier prices rose 0.7% in January from the prior month, the Labor Department said Thursday, the biggest gain since last summer. Economists polled by The Wall Street Journal had expected a 0.4% increase. Meanwhile, jobless-claims data showed little sign of a cooling in the labor market.
"It is increasingly difficult to see a significant U.S. recession on the horizon," Barings Investment Institute said.
"Much of the labor market continues to be white hot."
ASIAN STOCKS
Japanese stocks were lower in early trade, dragged by falls in electronics and tech stocks, as stronger-than-expected U.S. producer price data raise concerns about the Fed's further tightening. Zensho Holdings was 2.7% higher following its plan to buy Lotteria fast food restaurant business from Lotte Holdings. Investors were focusing on economic data and any policy-related developments as the earnings season comes to an end. The Nikkei Stock Average was down 0.6% at 27540.52.
South Korea's benchmark Kospi fell 0.5% to 2462.46 in early trade, as shipbuilding and internet stocks retreated. Renewed concerns that the U.S. Fed's policy tightening could last longer than expected are weighing on sentiment. Institutional investors remained net sellers. USD/KRW was 0.7% higher at 1,293.60. LG Chem retreated 2.7% after a decision to buy a 5.7% stake in U.S. mining company Piedmont Lithium for $75 million.
Hong Kong's benchmark Hang Seng Index slipped 0.1% to 20958.63 in early trade as investors go into wait-and-see mode amid China's economic recovery and recent Sino-U.S. tensions caused by a suspected Chinese spy balloon. Financial stocks were broadly lower after China Renaissance Holdings said Chairman Bao Fan, a well-known Chinese financier, had become unreachable. Shares of China Renaissance plunged 28% and AIA Group dropped 1.2%. Tech stocks climbed after initially opening lower. The Hang Seng Tech index was 0.8% higher after opening 0.2% lower.
Chinese shares were mixed in early trade as rangebound trading continued. The benchmark Shanghai Composite Index slipped 0.1% to 3246.63, the Shenzhen Composite Index was flat at 2150.00 and the ChiNext Price Index fell 0.3% to 2506.05. Auto stocks were broadly higher, with BYD inching 0.1% higher and SAIC Motor gaining 0.3%. China-U.S. relations were likely to remain in focus after the Chinese commerce ministry said Thursday that it blacklisted Lockheed Martin and a unit of Raytheon Technologies over their arms sales to Taiwan, Phillip Securities Research analysts said.
FOREX
Asian currencies weakened against USD in the morning session on prospects for aggressive Fed tightening that would enhance the appeal of U.S. fixed-income assets and boost demand for the greenback. St. Louis Fed President Bullard and Cleveland Fed President Mester appeared open to stepping up rate increases to 50 bps at the FOMC's March meeting, said DBS Group Research. Also, firmer U.S. PPI figures released overnight affirmed that disinflation lost some momentum in January, it added. USD/JPY rose 0.5% to 134.64 and USD/KRW advanced 0.6% to 1,297.85 while AUD/USD fell 0.3% to 0.6854.
METALS
Gold edged lower in the early Asian session on a strong U.S. dollar, which tends to move inversely with gold prices. Short-term strength of the greenback could drag the precious metal lower slightly, but the outlook should be for higher gold prices by end-2023, Oanda said. Gold might consolidate until traders see how high markets want to price in the Fed's peak rate, it added. Spot gold was 0.2% lower at $1,832.41/oz.
OIL SUMMARY
Oil declined in the morning Asian session amid negative sentiment. There appear to have been risk-off-related trades that have pushed crude oil prices lower, CMC Markets said. These trades have come in the wake of Wall Street losses overnight following stronger-than-expected U.S. PPI data and USD strength, it added. Front-month WTI crude oil futures fell 0.3% to $78.25/bbl; front-month Brent crude oil futures were 0.3% lower at $84.86/bbl.
TOP HEADLINES U.S. Households Lifting Economy After Being Stung by Inflation Last Year Two Fed Officials Would Have Supported Larger Rate Increase This Month Biden Says Unidentified Flying Objects Not Linked to Chinese Spy Activity China Renaissance Shares Fall After Chairman Bao Fan Went Missing Justice Department to Increase Scrutiny of Technology Exports, Investments U.S. Producer Prices Rose in January Global Trade Steadied In December, According to WSJ Indicator Singapore's Non-Oil Domestic Exports Fall for Fourth Straight Month Thailand 4Q GDP +1.4% On Year; 2022 GDP +2.6% El Niño's Return Grows More Likely as La Niña Weather Pattern Winds Down DoorDash Sales Rise as Consumer Demand Continues Tesla Recalls Cars With Self-Driving Flaw Visa Finance Chief Vasant Prabhu to Depart in September Fugitive Stablecoin Founder Do Kwon Accused of Securities Fraud in U.S. YouTube CEO Susan Wojcicki Is Stepping Down Microsoft Defends New Bing, Says AI Chatbot Upgrade Is Work in Progress Bridgestone Shares Rise Sharply After It Projects 12% Rise in 2023 Profit Moldova Gets New Pro-Western Premier Amid Growing Russian Pressure Tunisian Authorities Arrest Opposition Politicians Amid Social Discontent Belarus Leader Stands by Putin and Is Prepared to Aid More Russian Attacks on Ukraine
(END) Dow Jones Newswires
02-16-23 2215ET
