Indian Morning Briefing: Asian markets are mostly down

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GLOBAL MARKETS 
DJIA         31874.84    47.79    0.15% 
Nasdaq       11897.65   184.50    1.58% 
S&P 500       3959.90    23.21    0.59% 
FTSE 100      7264.31   -31.97   -0.44% 
Nikkei Stock 27637.28   -42.98   -0.16% 
Hang Seng    20694.12  -196.10   -0.94% 
Kospi         2395.81     8.96    0.38% 
SGX Nifty*   16515.50    18       0.11% 
*July contract 
 
USD/JPY  138.30-31   +0.03% 
Range    138.54   138.07 
EUR/USD  1.0208-11   +0.26% 
Range    1.0210   1.0177 
 
CBOT Wheat Sept $8.194 per bushel 
Spot Gold    $1,694.66/oz   -0.1% 
Nymex Crude (NY)  $102.26  -$1.96 
 
 
U.S. STOCKS 

Tech and other growth stocks rose on Wednesday as more corporate earnings reports were better than investors feared.

The Nasdaq Composite advanced 184.50 points, or 1.6%, to end the day at 11,897.65. The S&P 500 rose 23.21 points, or 0.6%, to 3,959.90. The Dow Jones Industrial Average added 47.79 points, or 0.2%, to 31,874.84.

All three indices rose for the second consecutive session and are trading at their highest levels since early June. Technology, communications and consumer discretionary stocks rallied as investors sought riskier areas of the market.

 
 
ASIAN STOCKS 

Japanese stocks were lower in morning trading, led by falling steel, brokerage and pharmaceutical stocks as uncertainty persists over high trading costs and their impact on earnings. Nippon Steel fell 3.7% and Nomura Holdings 2.2%. Shionogi fell 9.3% after a Japanese government panel rejected granting emergency approval to the company’s Covid-19 drug. Investors were focused on quarterly results, with Chugai Pharmaceutical due to report results later in the day. The Nikkei Stock Average fell 0.3% to 27,596.49.

South Korea’s benchmark Kospi rose 0.3% to 2394.36 in early trade, supported by electronics and retail stocks. Investors largely refrained from making big bets ahead of the European Central Bank’s monetary policy meeting later in the day and Q2 results from a batch of Korean companies. Index heavyweight Samsung Electronics rose 1.7%. Chip-making equipment maker Hanmi Semiconductor gained 4.0%. Automaker Hyundai Motor and steelmaker Posco Holdings were down 0.5% and 1.1%, respectively, ahead of their likely weak 2Q earnings expected later in the day.

Hong Kong’s Hang Seng index fell 0.4% to 20,797.82 on possible profit taking. There appear to be fund outflows underway and the overall balance of Hong Kong’s banking system has fallen rapidly, so local equities are likely to come under profit-taking pressure, KGI Research said in its morning commentary. . HSI’s worst performers include Galaxy Entertainment down 2.2%, AIA Group down 2.2% and Sands China down 2.5%. Meanwhile, Wuxi Biologics climbed 3.6%, NetEase 3.3% and Sunny Optical Technology 2.6%. The Hang Seng TECH index rose 0.2% to 4585.45.

Chinese stocks were weaker at the start of trading on concerns over the growing number of Covid-19 cases in the country. The AfDB cut its 2022 GDP growth forecast for the country to 4.0% from 5.0%, citing the impact of Covid clusters and lockdowns. The benchmark Shanghai Composite Index was down 0.5% at 3288.75, the Shenzhen Composite Index was down 0.5% at 2199.26 and the ChiNext Price Index was down 0.7 % to 2746.83. China-U.S. relations were likely to be in focus, after President Biden said he expected to hold talks with China’s Xi Jinping “within the next 10 days”, analysts said. the Commerzbank in a note. “The most relevant topic for markets is the possible reversal of Trump-era tariffs on more than $300 billion in imports from China.” Energy stocks fell, with PetroChina and China Oilfield Services each falling 0.4%.

FOREX 

Asian and G-10 currencies were mixed against the US dollar in the Asian morning session ahead of key events including the results of the two-day BOJ meeting and ECB meeting. The U.S. dollar could strengthen tonight if the ECB’s anti-fragmentation tool disappoints and/or the deposit rate is only raised by 25 basis points, ABC analysts said in a note. research. Meanwhile, the BOJ is expected to keep monetary policy unchanged, analysts said. While inflation expectations in Japan have picked up, the BOJ can only consider a policy shift if rising inflation expectations translate into sustained price and wage gains, they added. USD/JPY was little changed at 138.31, EUR/USD was up 0.2% at 1.0196 and USD/SGD was flat at 1.3929.

METALS 

Gold prices continued to fall at the start of Asian trading, after their lowest settlement in more than 15 months overnight on a stronger US dollar. “Gold fell below $1,700 an ounce as investors continue to reduce exposure to the sector ahead of central bank meetings,” ANZ analysts said in a note. The risk for gold appears to remain heavily tilted to the downside, Oanda senior market analyst Jeffrey Halley said in a note and pegged support for the precious metal at $1,675.00 an ounce. . Spot gold was down 0.1% at $1,694.66 an ounce.

OIL SUMMARY 

Oil prices were lower at the start of Asian trading, after data showed gasoline inventories rose by more than three million barrels last week, despite a modest weekly decline in domestic crude supplies. Concerns about growth in the EU could linger as the worsening energy crisis has added to a bleak outlook for the global economy, ABC analyst Vivek Dhar said in a note. Additionally, the shutdowns and restrictions are as always threatening to pose threats to the Chinese economy, due to the Chinese authorities’ insistence on sticking to their Covid-zero policy. “How the fall in global oil demand tracks the net reduction in global supply… will be crucial in determining prices over the next 12 months,” he said. First-month WTI crude oil futures fell 0.5% to $99.42/bbl and Brent fell 0.4% to $106.47/bbl.

 
 
TOP HEADLINES 
 
Putin Says Russia Will Honor Europe Gas Commitments but Warns of New Curbs 
ADB Cuts 2022, 2023 Growth Forecasts for Developing Asia 
Australian Business Conditions Jump Even as Confidence Sours 
Japan's Exports Rose 19.4% in June 
China Henan Bank Regulator to Start Refunds to Some Depositors July 25 
Lawmakers Near Deal on Tougher Rules for Stablecoins 
U.S. Home Prices Hit Record of $416,000 in June 
Rishi Sunak and Liz Truss Compete to Become Next British Prime Minister 
Europe Rolls Out Plan to Conserve Gas Amid Fears Russia Will Tighten Taps 
United Airlines Posts Profit, Warns on Fuel Prices, Recession Risk 
Ford Plans to Cut Several Thousand Salaried Jobs 
Musk's SpaceX, Mattel Team Up on Space Toys 
Alcoa Stock Jumps After Earnings Increase More Than Expected 
Tesla Ends Streak of Record Quarterly Profits After China Factory Shutdown 
Boeing Poised to Increase 787 Production Once Deliveries Restart 
Blackstone Puts Finishing Touches on Record Real-Estate Vehicle 
Lyft Lays Off About 60 Employees, Folds Its Car Rentals for Riders 
Growth Cools at Once-Hot Uber Eats and DoorDash 
Media Mogul Byron Allen Buys Black News Channel Out of Bankruptcy 
Woodside Second-Quarter Output Up 60%, Ends Sangomar Selldown Talks 
Zip Co. Reviews International Operations in Effort to Cut Cash Burn 
Newcrest's FY 2022 Gold Production Down, Costs Up 
Shionogi Shares Slump After Japan Panel Rejects Emergency Approval for its Covid-19 Drug 
 
 

(END) Dow Jones Newswire

07-20-22 2315ET

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