GLOBAL MARKETS DJIA 32816.92 -336.99 -1.02% Nasdaq 11394.94 -195.46 -1.69% S&P 500 3970.04 -42.28 -1.05% FTSE 100 7878.66 -29.06 -0.37% Nikkei Stock 27430.44 -23.04 -0.08% Hang Seng 19963.66 -46.38 -0.23% Kospi 2401.11 -22.50 -0.93% SGX Nifty* 17528.00 -14.5 -0.08% *March contract USD/JPY 136.12-13 -0.24% Range 136.52 136.01 EUR/USD 1.0554-57 +0.09% Range 1.0586 1.0546 CBOT Wheat March $7.082 per bushel Spot Gold $1,813.29/oz 0.2% Nymex Crude (NY) $76.59 $1.20 U.S. STOCKS
U.S. stocks pulled back Friday, notching their worst weekly performance of the year, as hot economic data have rekindled worries about restrictive Federal Reserve policy.
The S&P 500 fell 42.28 points, or 1.1%, to 3970.04. The technology-heavy Nasdaq Composite dropped 195.46 points, or 1.7%, to 11394.94. The blue-chip Dow Jones Industrial Average shed 336.99 points, or 1%, at 32816.92. The three indexes all dropped more than 2% in the holiday-shortened week, each logging their biggest weekly declines of 2023.
Investors' enthusiasm has quickly waned after a string of reports have indicated the U.S. is seeing stickier-than-expected inflation and a resilient economy, keeping the door open for the Fed to maintain aggressive monetary-tightening measures in order to cool price pressures.
ASIAN STOCKS
Japanese stocks were lower in early trade, dragged by falls in electronics and tech stocks, as concerns grow about the Fed's further tightening following strong U.S. inflation data on Friday. Investors were focusing on the yen, bond yields and any policy-related developments. The Nikkei Stock Average was down 0.5% at 27320.83.
South Korea's benchmark Kospi was 1.5% lower at 2386.83 in early trade, dragged by electronics and energy stocks. Renewed concerns about the Fed's policy tightening were prompting risk aversion, weighing on local equities. USD/KRW was 0.8% higher at 1,315.00. Korea Gas slumped 7.1% after its decision to pay no dividend despite better-than-expected 4Q results, as the state utility planned to focus more on improving finances.
Hong Kong's Hang Seng Index fell 0.8% to 19849.90, tracking Wall Street losses Friday. Risk-off sentiment was probably the best summary of market movements for now, said CMC Markets, noting Friday's stronger-than-expected U.S. inflation data that pressured Wall Street. Losses on the benchmark HSI were led by a mixed bag of companies. Haidilao International climbed 12% after saying it expected a net profit for 2022 versus a net loss in 2021. The Hang Seng Tech index was down 1.4% at 3955.07.
Chinese stocks were mixed in morning trading, improving slightly from opening losses. The benchmark Shanghai Composite Index was 0.1% higher at 3270.64, while the Shenzhen Composite Index fell 0.2% and the ChiNext Price Index was 0.1% lower. The market has been range-bound for the past several weeks, as investor sentiment cooled from previous reopening-led enthusiasm and aggressive buying. Concerns have been rising over how much upside A shares still offer, but China Securities analysts said that the market's current risk-reward profile likely remains favorable. The brokerage said it expected the market's rebound momentum to pick up in the longer run.
FOREX
The yen strengthened against other G-10 and Asian currencies in the morning session amid risk-off sentiment, which could help support the Japanese currency's haven allure. The "blowout" reading of the U.S. core PCE price index released Friday has kept pressure on the risk environment, given Fed rate-increase expectations have been recalibrated to be more hawkish following the release of the data, IG said. USD/JPY fell 0.2% to 136.02, AUD/JPY dropped 0.2% to 91.66 and EUR/JPY was down 0.2% at 143.64.
METALS
Gold edged higher following its recent decline. Gold fell last week following a hotter-than-expected U.S. PCE inflation figure, although it is still trading above the $1,800/oz level, said Oanda. It reckoned that the bearish momentum could be strong if gold manages to break below that level. Gold prices were likely to continue to wobble as more traders expected U.S. Federal Reserve interest rates to stay higher for longer, it added. Spot gold rose 0.2% to $1,813.29/oz.
OIL SUMMARY
Crude-oil prices were little changed in early Asian trade amid doubts about whether OPEC will continue to keep its production cut intact. "We assume that the China demand boom and flattish non-OPEC supply will push the market in deficit from June onwards, and lead OPEC to announce a reversal of its production cut at the June meeting, said Goldman Sachs analysts in a note. However, OPEC leaders have emphasized that the October production cut is there to stay for the rest of 2023, and OPEC has historically responded cautiously to domestic demand pulls out of China, they added. The front-month contract for WTI futures was flat at $76.31/bbl while the front-month Brent crude contract was down 0.1% at $83.08/bbl.
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(END) Dow Jones Newswires
02-26-23 2215ET
