Indian Morning Briefing: Asian Markets Mixed at Start of the Week

GLOBAL MARKETS 
DJIA        29296.79  -630.15  -2.11% 
Nasdaq      10652.40  -420.91  -3.80% 
S&P 500      3639.66  -104.86  -2.80% 
FTSE 100     6991.09    -6.18  -0.09% 
Nikkei Stock Closed 
Hang Seng   17348.30  -391.75  -2.21% 
Kospi        Closed 
SGX Nifty*  17036.00  -278     -1.61% 
*Oct contract 
 
USD/JPY 145.41-42   +0.07% 
Range   145.67   145.29 
EUR/USD 0.9742-45   +0.04% 
Range   0.9754   0.9725 
 
CBOT Wheat Dec $8.802 per bushel 
Spot Gold   $1,696.45/oz  0.2% 
Nymex Crude (NY) $92.52  $4.07 
 
 
U.S. STOCKS 

US stocks slid on Friday after a relatively strong jobs report, capping a roller-coaster week in which investors pinned hopes of looser monetary policy – only to abandon them.

The Dow Jones Industrial Average fell 630.15 points, or 2.1%, to 29296.79. The S&P 500 slipped 104.86 points, or 2.8%, to 3639.66. The Nasdaq Composite lost 420.91 points, or 3.8%, to 10652.40.

All three indices remained higher for the week after three straight weeks of declines. The Dow is up 2% this week, while the S&P 500 is up 1.5% and the Nasdaq is up 0.7%.

 
 
ASIAN STOCKS 

Markets in Japan and South Korea are closed on Monday for a public holiday.

Hong Kong’s Hang Seng Index was 2.0% lower at 17386.37, mirroring last Friday’s losses on Wall Street, which were buoyed by a solid US jobs report. The report increased the likelihood that the Fed would proceed with a rate-hiking cycle that many investors fear will push the economy into a recession, Phillip Securities Research said. The US CPI report, due out this week, could provide an important snapshot of the state of inflation, the team added. Losses at HSI were broad-based, with Li Ning down 4.9%, Sunny Optical Technology down 5.4% and Sands China down 4.6%. The Hang Seng Tech Index fell 2.9% to 3437.74.

Also Read :  Stock markets falls as economy strains, recession risks rise

Chinese stocks were mixed as the market resumed trading after a week-long holiday. The benchmark Shanghai Composite Index rose 0.1% to 3026.70, holding on to opening gains. The Shenzhen Composite Index and ChiNext Price Index both declined, down 0.3% to 1906.69 and 0.6% to 2275.05, respectively. Market conditions likely turned more favorable after the National Day holiday as global stocks rallied in recent sessions, increasing overall risk appetite in the stock market, GF Securities said. Their technical analysis also suggested that A-share valuations were likely to bottom soon.

FOREX 

Asian currencies were mixed against the USD in the morning Asian session but could weaken on heightened expectations of a Fed rate hike spurred by last Friday’s US jobs report, analysts said. Asia ex-Japan currencies would remain under pressure today, analysts at MUFG Bank said in a research note. A stronger USD following the US jobs report combined with risk aversion fueled by China’s Caixin services PMI falling into contractionary territory could weigh on currencies, MUFG Bank added. USD/THB was up 0.2% to 37.67, USD/SGD was little changed at 1.4334 and AUD/USD was up 0.2% to 0.6375.

METALS 

Gold edged higher in early Asian morning session amid the holiday break in parts of Asia, but gains could be capped by concerns over aggressive Fed tightening following last Friday’s solid US jobs report. The precious metal could be vulnerable ahead of this week’s US inflation data as market participants looked to see a much softer jobs report, Oanda said. Unless inflation data shows surprises of a slowdown, a Fed pivot seems far away, Oanda added. Spot gold rose 0.2% to $1,696.45/oz.

OIL SUMMARY 

Oil prices fell in the early Asian session after surging last week on OPEC+’s decision to cut production. Oil prices pulled off their highs in early Asian trade, SPI Asset Management said, noting media reports that the US planned to offer eight companies oil that would be released from the Strategic Petroleum Reserve. Front month WTI crude futures were down 0.3% at $92.37/bbl; Front month Brent crude futures were down 0.3% at $97.66/barrel.

 
 
TOP HEADLINES 
 
China National Day Holiday Spending Fell Amid Tighter Covid-19 Controls 
Caixin China Services PMI Fell Sharply in September 
Australian Services Sector Contraction Supports Slower RBA Hikes 
Burger King's New U.S. CEO Seeks to Restore Chain's Luster 
Medical-Device Maker Jenscare Scientific's Shares Rise in Hong Kong Debut 
BlackRock Walks a Political Tightrope on Climate Issues 
BAE, U.S. in Talks to Restart M777 Howitzer Production After Ukraine Success 
CEO of Biotech Lobbying Group on Leave Amid Clash Over Direction 
Rivian Recalls Nearly All of Its Vehicles Due to Loose Fastener 
Link Engages Dye & Durham on Latest M&A Proposal 
Iran Protests Are Proving a Durable Challenge to the Islamic Republic 
Russia Scrambles to Reconnect Supply Lines to Crimea After Bridge Explosion 
Midterm Report Card on Biden Economy Clouded by OPEC, Fed Moves 
Kim Jong Un Oversaw Recent North Korean Tests of Tactical Nuclear Weapons 
 
 

(ENDS) Dow Jones Newswires

Also Read :  Challenging conditions put corporate integrity standards at risk in emerging markets | EY

Oct 09 2022 23:15 ET (03:15 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

Leave a Reply

Your email address will not be published.