Financial Market

Indian Morning Briefing: Asian Markets Mostly Fall at Start of Week

GLOBAL MARKETS 
DJIA          29590.41   -486.27    -1.62% 
Nasdaq        10867.93   -198.88    -1.80% 
S&P 500        3693.23    -64.76    -1.72% 
FTSE 100       7018.60   -140.92    -1.97% 
Nikkei Stock  26593.93   -559.90    -2.06% 
Hang Seng     17965.73     32.46     0.18% 
Kospi          2236.40    -53.60    -2.34% 
SGX Nifty*    17188.50   -143.5     -0.83% 
*Sept contract 
 
USD/JPY    143.92-93   +0.41% 
Range      144.08   143.26 
EUR/USD    0.9658-61   -0.31% 
Range      0.9711   0.9556 
 
CBOT Wheat Dec   $8.804 per bushel 
Spot Gold  $1,642.97/oz  Unch. 
Nymex Crude (NY) $79.02     -$4.47 
 
 
US STOCKS 

A wave of selling in financial markets swept across the globe, with nervous investors forced to again confront the specter of recession.

Investors, mulling stubbornly high inflation and unnerved by Russia’s attempts to escalate the war in Ukraine, have fled for the exits this week, driving a concurrent selloff in stocks and bonds. Bond yields remained near their highest levels in more than a decade as prices tumbled.

The Dow Jones Industrial Average lost 1.6%. The S&P 500 dropped 1.7%. The Nasdaq Composite declined 1.8%.

The three indexes tumbled for a second consecutive week in a selloff that has dragged down the S&P 500 by 9.2% and the Dow by almost 8%. That marked their worst two-week declines since June. The Nasdaq has fallen more than 10% over the past two weeks, its biggest such decline since March 2020, during the pandemic-induced market crash.

 
 
ASIAN STOCKS 

Japanese stocks were weaker, dragged by falls in auto and electronics stocks, as concerns continued about policy tightening by major central banks and the global economic outlook. Japanese officials’ comments on the yen are being closely watched following the government announcement of yen-buying intervention on Thursday. USD/JPY was at 143.56, compared with 143.34 late Friday in New York. The Nikkei Stock Average was down 2.0% at 26614.93.

South Korea’s benchmark Kospi was 1.9% lower at 2247.33 in morning trade, dropping in line with other regional markets as sentiment remains negative after U.S. stocks fell Friday amid fears of a recession. Developments relating to North Korea will also be closely watched, after the country fired a short-range ballistic missile into the East Sea on Sunday.

Hong Kong stocks were slightly higher in morning trade, picking up from opening losses and showing signs of recovery from last week’s broad downturn. The benchmark Hang Seng Index edged up 0.1% to 17950.59. Macau casino operators led gains, after the city said it plans to resume accepting group tours from mainland China soon. But Ping An Securities analysts warned that risk-averse sentiment is likely to persist in the near term, given the global high interest-rate environment. While the market’s valuations are cheap, a clear path to recovery remains uncertain, they said.

Chinese shares diverged in early trade as regional equities had a weak start to the week. Chinese shares fell last week amid concerns that Beijing’s prolonged zero-Covid policy may drag on the country’s corporate earnings and economic growth. Losses this morning were led by oil companies and miners. The Shanghai Composite Index fell 0.1% to 3084.90, the Shenzhen Composite Index weakened 0.1% and the ChiNext Price Index was 0.6% higher.

FOREX 

Most Asian currencies weakened sharply against the USD amid rising fears of a global recession. If a sense of crisis about the world economy were to emerge, the USD could climb substantially, said CBA strategists in a research report. The U.K.’s poor situation exacerbated support for USD, while the pickup in financial-market volatility aided USD and CHF due to their safe-haven status, the strategists added. USD/KRW rose 0.4% to 1,428.80 after earlier touching 1,433.56, its highest intraday level since March 2009, and USD/THB gained 0.7% to 37.77 after reaching 37.82, its highest intraday level since August 2006, according to FactSet.

METALS 

Gold prices were little changed in Asian trade, after settling Friday at their lowest price since April 2020 on a stronger USD. Developments relating to interest rates moves by the Fed will be closely watched, with FOMC members believing that interest rates will continue to climb further next year, Commerzbank analysts said in a note. “For as long as the Fed remains on this interest rate path, the gold price is likely to have a hard time making any lasting gains,” they added. Spot gold was little changed at $1,642.97/oz.

OIL SUMMARY 

Oil prices were higher in early Asian trade, recovering from Friday’s losses, which were driven by a stronger USD and fears of a recession. But the outlook for oil remains broadly negative. “It seems central banks are poised to remain aggressive with rate hikes and that will weaken both economic activity and the short-term crude demand outlook,” Oanda’s senior market analyst Edward Moya said in a note. He also thinks the USD rally will continue and weigh on oil prices in the near term. Front-month WTI futures rose 1.4% to $79.85/bbl and Brent gained 1.3% to $87.27/bbl.

 
 
TOP HEADLINES 
Dow Closes at Lowest Level of 2022 as Growth Fears Roil Markets 
China PBOC Raises Forex Risk Reserve Ratio for Forward Trading 
Pound Hits Record Low as Selling Continues After U.K. Tax-Cut Plan 
Buying the Stock-Market Dip Is Backfiring. Investors Keep Piling In Anyway. 
Central Banks May Stoke Risks by Raising Interest Rates Together 
Amazon, Berkshire Hathaway Could Be Among Top Payers of New Minimum Tax 
Slide in Transportation Stocks Flashes Warning About Economy 
Carbon-Credit Surplus Could Soon Turn to Shortage 
Pensions Brace for Private-Equity Losses 
China Stresses Its Taiwan Stance at U.N. 
Iran's Hard-Line Government Faces Growing Unrest Over Women's Rights 
Pushing East of Kupyansk, Ukrainian Forces Expand Offensive 
Fiona Moves Away From Canada, Leaves Thousands Without Power 
Shinzo Abe Assassination Stirs Surprise Backlash Against the Former Leader 
Italian Right Is On Course to Win Elections 
U.S. in Talks to Build First Nuclear Subs for Australia 
Macau Casino Shares Jump on Hopes of Sooner Return to Normal 
Toyota Softens Toward Critics of Its EV Push 
Covid-19 Vaccine Rollout Carries Lessons for Pharma Supply Chains, Says Pfizer Executive 
Gucci, Burberry Join Booming Secondhand Luxury Trade 
Glencore Wins Judge's Approval of Market Manipulation Settlement 
Ford's Latest Supply-Chain Problem: a Shortage of Blue Oval Badges 
Justice Department Loses Antitrust Bid to Block Sugar Industry Merger 
 
 

(END) Dow Jones Newswires

September 25, 2022 23:15 ET (03:15 GMT)

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

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