GLOBAL MARKETS DJIA 31135.09 30.12 0.10% Nasdaq 11719.68 86.10 0.74% S&P 500 3946.01 13.32 0.34% FTSE 100 7277.30 -108.56 -1.47% Nikkei Stock 27907.08 88.46 0.32% Hang Seng 18982.27 135.17 0.72% Kospi 2419.71 8.29 0.34% SGX Nifty* 18045.50 55.5 0.31% *Sept contract USD/JPY 143.29-30 +0.09% Range 143.45 142.80 EUR/USD 0.9974-77 -0.05% Range 0.9987 0.9970 CBOT Wheat Sept $8.536 per bushel Spot Gold $1,697.10/oz Unch Nymex Crude (NY) $88.68 $1.37 U.S. STOCKS
U.S. stocks inched higher Wednesday, recovering some losses from the previous day's wild session that was spurred by a hotter-than-expected inflation report.
The S&P 500 added 13.32 points, or 0.3%, to 3946.01, a day after the benchmark index plummeted 4.3% in its worst selloff since June 2020. The Dow Jones Industrial Average rose 30.12 points, or 0.1%, to 31135.09. The tech-focused Nasdaq Composite gained 86.10 points, or 0.7%, to 11719.68. The indexes wobbled between small gains and losses throughout the session.
ASIAN STOCKS
Japanese stocks were slightly higher, led by railway and airline stocks, as hopes continue that the government will ease Covid-19-related border rules to attract foreign visitors. East Japan Railway was up 2.6% and ANA Holdings was 1.6% higher. Investors were closely watching Japanese government officials' comments on the yen as uncertainty continues over the Fed's pace of tightening. USD/JPY was at 143.10, compared with 143.85 as of Wednesday's Tokyo stock market close. The Nikkei Stock Average was 0.1% higher at 27855.65.
South Korea's benchmark Kospi was flat at 2410.66 after opening higher amid choppy trade. Korean won movements would likely be closely watched after the currency hit a 13-year low versus the U.S. dollar, amid concerns that the U.S. Fed will further raise interest rates following a hotter-than-expected inflation data. Electronics stocks were mixed, with SK-Electronics falling 0.5% and Samsung Electronics up 0.4%. Amid tech stocks, Kakao Corp. was 0.6% higher and Naver Corp. was down 0.2%.
Hong Kong shares opened lower but quickly turned positive, rebounding from yesterday's six-month closing low. This followed Beijing's move to extend tax deferral for smaller manufacturers in a bid to support economic growth. Property developers led gains, with Country Garden Holdings jumping 8.3%, Longfor Group up 6.0% and China Resources Land adding 3.2%. Among tech shares, Tencent Holdings was up 0.6% after subsidiary Tencent Music Entertainment filed to list in Hong Kong by way of introduction. Among decliners, NetEase and Baidu were each down more than 1%. The benchmark Hang Seng Index was up 0.4% at 18927.08.
Chinese shares were largely higher in early trade. The benchmark Shanghai Composite Index rose 0.5% to 3253.36 and the Shenzhen Composite Index gained 0.2% to 2105.23, while the ChiNext Price Index was flat at 2503.70 after opening higher. "The absence of any clear resolution in China's Covid-19 policy and uncertainty on further moderation in economic conditions ahead remain a weighing block for risk sentiments," IG market strategist Yeap Jun Rong says in a note. Among lenders, Agricultural Bank of China is flat and Bank of China rises 0.3%.
FOREX
Asian currencies were consolidating against USD after sharp movements during the past two days caused by hotter-than-expected U.S. inflation and media reports of BOJ rate check in the foreign-exchange market. Factors including better economic fundamentals in Asia were helping to smooth volatility in the region's currency markets for now, said ING economists in a morning commentary. USD/KRW rose 0.2% to 1,394.79 and USD/SGD was little changed at 1.4059.
Goldman Sachs sees further scope for JPY weakness in the near term, given its economists' latest upward revisions to the Fed's rate-increase path and its rates strategists foreseeing upside risks to U.S. Treasury yields, said analyst Karen Reichgott Fishman in a research report. GS's standard foreign-exchange model suggests that if the 10-year Treasury yield rises to 4.5%, USD/JPY could rally by another 7% to nearly 155, all else being equal, the analyst says. While likelihood of Japan's FX intervention looks low, escalation in verbal intervention together with reported "rate checks" should raise the odds priced into markets, the analyst added. GS remains comfortable with its 3-month USD/JPY forecast of 145.00. USD/JPY was up 0.1% at 143.32.
METALS
Gold prices were little changed in Asian trade, after declining overnight as investors continued to digest Tuesday's surprisingly strong U.S. August inflation data. "Gold's fate will be determined next week when policy makers decide if the Fed needs to be even more aggressive with fighting inflation," Oanda senior market analyst Edward Moya said in a note. "Gold could be vulnerable to a tumble towards $1,650 and possibly much lower if the Fed signals more aggressive rate hikes remain on the table," he added. Spot gold was flat at $1,697.10/oz.
OIL SUMMARY
Oil prices were higher in early Asia trade, extending overnight gains amid speculation that the Biden administration may consider refilling the U.S. oil reserve at $80 a barrel. Sentiment is also partly supported by news that China's city of Chengdu would gradually ease its lockdown measures. "With Iranian oil exports unlikely to rebound any time soon given setbacks to the revival of the 2015 nuclear accord, we continue to believe that oil markets will tighten by the end of the year, supporting our call for Brent futures to lift to $US100/bbl in Q4," CBA strategist Vivek Dhar said in a note. Front-month WTI futures rose 0.6% to $88.99/bbl and Brent gained 0.4% to $94.51/bbl.
TOP HEADLINES China Announces $28.73 Billion Relending Quota for Manufacturers, Service Providers China's Central Bank Keeps Key Policy Rate Unchanged Supplier Inflation Stayed Elevated in August Amtrak to Suspend Long-Distance Services as U.S. Railroad Strike Looms Japan Exports Grow on Robust Demand RBA Board Members May Face Calls for Added Transparency Australian Unemployment Edges Higher, Job Market Stays Drum Tight New Zealand's Economy Rebounds as Covid Lockdowns End EU Seeks to Raise $140 Billion Clawing Back Energy Profits Global Oil Demand Undermined by China Lockdowns, IEA Says TikTok Exec Says Agreement With U.S. Government to Address User-Data Concerns Disney's Chapek Hints at All-in-One Streaming App Tencent Music Seeks Hong Kong Listing Via Introduction Google Makes Cuts to In-House Startup Incubator U.S. to Withhold $130 Million in Security Aid to Egypt Over Human Rights Concerns U.S. Considers Sanctions on Iran-Linked Entities After Salman Rushdie Attack Far-Right Party in Sweden Drives Opposition Bloc to Election Win Justice Department Charges Three Iranians With Ransomware Attacks
(END) Dow Jones Newswires
09-14-22 2315ET
