Indian Morning Briefing: Asian markets are down overall

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.

 
 
ASIAN STOCKS 

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%.

FOREX 

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.

METALS 

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.

OIL SUMMARY 

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.

 
 
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(END) Dow Jones Newswire

December 06, 2022 10:15 p.m. ET (03:15 GMT)

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

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