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GLOBAL MARKETS DJIA 31499.62 417.06 1.34% Nasdaq 10952.61 92.90 0.86% S&P 500 3797.34 44.59 1.19% FTSE 100 7013.99 44.26 0.64% Nikkei Stock 27221.54 246.64 0.91% Hang Seng 15059.23 -121.46 -0.80% Kospi 2243.45 7.29 0.33% SGX Nifty* 17784.50 -59.5 -0.33% *Oct contract USD/JPY 148.92-93 -0.06% Range 149.10 148.73 EUR/USD 0.9883-86 +0.10% Range 0.9900 0.9868 CBOT Wheat Dec $8.386 per bushel Spot Gold $1,653.83/oz 0.2% Nymex Crude (NY) $84.67 -$0.38 US STOCKS
U.S. stocks gained as investors focused on encouraging signs from corporate earnings and hoped for smaller interest-rate increases ahead from the Federal Reserve.
The Dow Jones Industrial Average climbed 1.3%, to its highest level in six weeks. The S&P 500 advanced 1.2%. The technology-heavy Nasdaq Composite rose 0.9%, after starting the day in the red.
“Market participants are desperately looking for a Fed pause or pivot,” said Chris Senyek, chief investment strategist at Wolfe Research.
Still, he cautioned that such hopes would likely be dashed by continuing high inflation and low unemployment, which would pressure the central bank to maintain its hawkish stance. “We think a Fed pause is a long way off,” Senyek said.
ASIAN STOCKS
Japanese stocks were higher in morning trade, led by gains in electronics and auto stocks as hopes persisted that the Fed will slow its pace of tightening. Investors are focusing on earnings as well as any comments on the yen from Japanese government officials. USD/JPY was at 148.81, compared with 148.97 as of Monday’s Tokyo stock-market close. The Nikkei Stock Average was up 0.7% at 27167.44.
South Korea’s benchmark Kospi gained 0.5% to 2248.05 in mixed early trade, as corporate earnings results trickle in. Steel and chemical stocks fell while tech and battery shares rose. Foreign investors were net sellers while retail and institutional investors were net buyers. Financial stocks were mixed ahead of 3Q earnings releases later in the day.
Hong Kong’s Hang Seng Index rose 0.1% to 15190.50 after swinging between moderate gains and losses earlier in the session. Local markets likely rose in a technical rebound after the index suffered its biggest one-day decline since the global financial crisis. Meanwhile, investors appear worried that China’s President Xi will now have a greater say in policy direction, with his new top leadership team packed by loyalists, said Yeap Jun Rong, market strategist at IG, in an email. The Hang Seng Tech Index was up 1.1% at 2833.75.
Shares in mainland China were lower in early trading, with investors remaining wary following Monday’s selloff in the wake of the Communist Party’s national congress meeting. Beijing’s emphasis “on the ‘common prosperity’ agenda leaves big corporates in the crosshairs, leading to further shunning of Chinese big tech companies on concerns that further follow-up in regulatory reforms could be” in the offing, IG analyst Yeap Jun Rong said. The Shanghai Composite Index declined 0.4% to 2969.74, the Shenzhen Composite Index was down 1.0% and the ChiNext Price Index was 1.4% lower.
FOREX
Most Asian currencies strengthened against USD in the morning Asian session. For today, positive risk sentiment following Wall Street’s gains overnight will probably have a positive spillover effect across most Asian countries and lift Asia ex-Japan currencies, said MUFG Bank currency analyst Sophia Ng in a research report. Better-than-expected U.S. corporate earnings reports have been driving U.S. equity markets higher, and this trend may persist this week with more earnings reports scheduled for release to drive risk-taking, Ng added. USD/KRW fell 0.5% to 1,437.60 and USD/SGD edged 0.1% lower to 1.4205 while AUD/USD was up 0.3% at 0.6334.
METALS
Gold prices were a tad higher in early Asian trade as traders await major central bank decisions due this week. “Gold traders are buckling in for a bumpy ride as this week’s risk flows will be determined by some heavyweight earnings and from a couple massive rate decisions from the European Central Bank and Bank of Japan,” Oanda senior market analyst Edward Moya said in a note. Spot gold was up 0.2% to $1,653.83/oz.
OIL SUMMARY
Crude-oil prices were up in early Asian trade, with supply issues in focus. Traders’ attention will likely remain on the tight physical oil market amid constraints such as EU sanctions on Russian oil, ANZ analysts said in a note. ANZ cites data showing that seaborne shipments of Russian oil fell to a five-week low in the seven days to Oct. 21. The front-month WTI contract rose 0.4% to $84.94/bbl while front-month Brent was up 0.4% at $93.59/bbl.
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(END) Dow Jones Newswires
October 24, 2022 23:15 ET (03:15 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Read More:Indian Morning Briefing: Asian Markets Mixed; China, Hong Kong Stocks Extend Selloff
2022-10-25 03:15:00
