GLOBAL MARKETS DJIA 33629.56 254.07 0.76% Nasdaq 11364.41 223.98 2.01% S&P 500 4019.81 47.20 1.19% FTSE 100 7784.67 14.08 0.18% Nikkei Stock 27329.70 423.66 1.57% Hang Seng CLOSED Kospi CLOSED SGX Nifty* 18329.50 94.5 0.52% *Feb contract USD/JPY 130.40-41 -0.20% Range 130.71 130.16 EUR/USD 1.0876-79 +0.04% Range 1.0885 1.0868 CBOT Wheat March $7.200 per bushel Spot Gold $1,934.30/oz 0.2% Nymex Crude (NY) $81.66 $0.02 U.S. STOCKS
U.S. stocks rose Monday as investors bet the Federal Reserve will dial back its interest-rate increases and braced for a busy week of corporate earnings reports.
The S&P 500 added 47.20 points, or 1.2%, to 4019.81. The Dow Jones Industrial Average gained 254.07 points, or 0.8%, to 33629.56. The Nasdaq Composite moved 223.98 points, or 2% higher, to 11364.41.
The stock market has rebounded to start 2023 as investors predict moderating inflation will encourage the Fed to ease its interest-rate lifts and potentially cut rates later this year.
ASIAN STOCKS
Japanese stocks were higher in morning trade, led by gains in chip-related stocks as the yen weakened overnight and concerns about borrowing costs ease. USD/JPY was at 130.66, up from 129.86 as of Monday's Tokyo stock-market close. Nidec Corp.'s results due later in the day would be in focus as they kick off the earnings season in Japan. The Nikkei Stock Average was up 1.3% at 27253.23.
Markets in China, Hong Kong and South Korea are closed for the Lunar New Year holiday.
FOREX
USD/JPY gave up some gains made overnight on the prospect of the Fed's slower tightening, which boosted stocks and long-term U.S. Treasury yields. Investors were focusing on U.S. GDP and inflation data this week. Still, the Fed may not be able to start discussing the pausing of rate increases given gains in services prices and upward pressure on wages, SMBC Nikko Securities said. It was likely that the Fed will only halt rate increases in response to the worsening of the economy following continued policy tightening, it added. USD/JPY was at 130.25, down from 130.66 as of Monday 5 p.m. ET.
METALS
Gold was up in late-morning trade in Asia, as analysts warned that the precious metal was increasingly facing profit-taking risk. That could put an end to its recent rally, which has been driven by expectations of slowing global economic growth and easing interest-rate increases. Everbright Futures analysts reckon the latest bullish run for gold was getting overheated, especially given uncertainty over the Fed's upcoming rate decisions and macroeconomic conditions worldwide. "We don't advise chasing the upturn," they said. Spot gold was 0.2% higher at $1,934.30/oz.
OIL SUMMARY
Oil prices rose in Asian trade, extending a strong rally since early January. While market worries over potential profit-taking pressure and a possible global recession persist, analysts at Guotai Junan Futures reckoned the energy commodity likely had further upside room. They pointed to increasing optimism over China's demand rebound strength, especially after the country's better-than-expected 4Q GDP data. Front-month WTI futures advanced 0.3% to $81.83/bbl; front-month Brent rose 0.2% to $88.32/bbl.
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(END) Dow Jones Newswires
01-23-23 2215ET