GLOBAL MARKETS DJIA 33596.34 -350.76 -1.03% Nasdaq 11014.89 -225.05 -2.00% S&P 500 3941.26 -57.58 -1.44% FTSE 100 7521.39 -46.15 -0.61% Nikkei Stock 27765.75 -120.12 -0.43% Hang Seng 19522.54 81.36 0.42% Kospi 2390.28 -2.88 -0.12% SGX Nifty* 18726.50 -26 -0.14% *Dec contract USD/JPY 136.90-91 -0.11% Range 137.37 136.83 EUR/USD 1.0471-74 +0.07% Range 1.0478 1.0456 CBOT Wheat Dec $7.054 per bushel Spot Gold $1,770.48/oz Unch Nymex Crude (NY) $74.40 -$2.53 U.S. STOCKS
U.S. stock indexes extended their decline on Tuesday as investors weighed fears about the interest rate outlook against optimism surrounding China’s reopening.
The S&P 500 fell 57.58 points, or 1.4%, to 3,941.26, while the Dow Jones Industrial Average fell 350.76 points, or 1%, to 33,596.34, and the Nasdaq Composite, technology-heavy slid 225.05 points, or 2%, to 11,014.89.
Japanese stocks fell, led by falling electronics and energy stocks, as concerns persisted about the outlook for US interest rates amid high inflation. Investors focused on crude oil prices and the yen. The Nikkei Stock Average fell 0.6% to 27,710.81.
South Korea’s benchmark Kospi fell 0.4% to 2384.45 in early trading as electronics and fintech stocks fell. Prolonged declines on Wall Street amid growing worries about higher interest rates and a possible recession next year are weighing on investor sentiment. Foreign and retail investors were net sellers. USD/KRW is up 0.2% at 1,322.00 on renewed risk aversion.
Hong Kong’s benchmark Hang Seng index recently rose 0.4% to 19519.85, after opening lower trailing losses on Wall Street overnight. Investors remain concerned about the Fed’s aggressive monetary tightening after strong economic data in the United States. Among the laggards are Chinese property developers and oil majors. Alibaba Health rose 3.4%, resuming a recent rally as Chinese authorities ease some Covid-19 restrictions.
Mainland Chinese stocks fell in early trading after rising for two sessions so far this week. Market watchers expect Beijing to focus on economic development in 2023 as the country moves towards reopening, which means more support for growth and further support for the real estate sector, UBS said. Chipmakers and pharmaceutical stocks weighed on the market while stocks of transportation and consumer companies continued to rally. The Shanghai Composite Index was down 0.2% at 3204.94, the Shenzhen Composite Index was down 0.3% and the ChiNext Price Index was down 0.5%.
NZD/USD was at 0.6320 early Wednesday, trading in a narrow band. The Australian and New Zealand banking group said the focus was increasingly on next week’s Fed meeting. “We think this will be difficult to interpret,” ANZ said. “A smaller rise is all but assured, leaving the focus on the terminal rate, which will need to strike the right balance: high enough to credibly lower inflation, but not so high that it stokes recession fears. ” ANZ expected a volatile dollar through the end of 2022, with a good chance of an upward correction. Next week’s semi-annual economic update, or HYEFU, was also important for the NZD. “This is unlikely to be positive for bonds, but potentially higher bond yields and the need for overseas buyers could result in buying flows into NZD,” ANZ said.
Gold prices were trading sideways at the start of Asian trading. The price of the precious metal was holding up despite the risky mood on Wall Street amid fears of recession, leading to a return to safe havens, Oanda said. He expects gold to consolidate near $1,760/oz. Spot gold was flat at $1,770.48/oz.
Crude oil prices were mixed at the start of trading amid uncertainty. While there has recently been optimism that China will further ease its Covid-related restrictions, refiners have cut production this month due to fears that demand could fall, ANZ said. Fears of weaker global economic growth could also weigh on the price of oil, he added. The first-month WTI futures contract was down 0.1% at $74.21/bbl while the first-month Brent crude contract was up 0.2% at $79.49/bbl.
TOP HEADLINES Australia's Economic Growth Moderates Even as Consumers Keep Spending Goldman CEO David Solomon Prepares for a Possible Recession High Debt Levels Could Pressure Developing Countries, World Bank Says Oil Price Cap Triggers Tanker Traffic Jam in Turkish Straits U.S. Trade Deficit Widened in October U.S. Opens First Auctions for California Offshore Wind Rights Juul Reaches Settlement of Over 5,000 Lawsuits Honda SUV Engine-Failure Reports Spur Federal Investigation Jeff Bezos's Space Company Bids Again For NASA Moon Lander, After SpaceX Win Airbus Warns It Will Miss Full-Year Delivery Target Pinterest Adds Elliott Executive to Its Board Country Garden to Raise Funds to Refinance Offshore Debt Morgan Stanley Is Cutting About 1,600 Jobs Globally Nissan Grapples With Currency Volatility, Even as Weak Yen Boosts Earnings Lawmakers Want Answers From Silvergate About FTX Transfers BuzzFeed Plans to Cut 12% of Workforce Trump Organization Found Guilty of Criminal Tax Fraud in New York Trial Mexico's Congress Defeats President's Bill to Overhaul Election Agency Argentine Court Sentences Vice President Cristina Kirchner to Six Years in Prison Raphael Warnock, Herschel Walker Square Off in Georgia Senate Runoff Election
(END) Dow Jones Newswire
December 06, 2022 10:15 p.m. ET (03:15 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
#Indian #Morning #Briefing #Asian #markets