Indian Morning Briefing : Asian Markets Rise at Start of the Week

DJIA           31288.26    658.09     2.15% 
Nasdaq         11452.42    201.24     1.79% 
S&P 500         3863.16     72.78     1.92% 
FTSE 100        7159.01    119.20     1.69% 
Nikkei Stock         Closed 
Hang Seng      20426.43    128.71     0.63% 
Kospi           2365.92     34.94     1.50% 
SGX Nifty*     16207.00    167        1.04% 
*Jul contract 
USD/JPY    138.11-12   -0.30% 
Range       138.62   138.03 
EUR/USD    1.0106-09   +0.20% 
Range      1.0116   1.0079 
CBOT Wheat Sept   $7.766 per bushel 
Spot Gold   $1,709.47/oz   0.2% 
Nymex Crude (NY)  $97.29      $1.51 

U.S. stocks rebounded, capping a volatile week during which investors tried to reconcile a flurry of corporate-earnings reports and data that at times appeared to offer conflicting narratives on the economic outlook.

Major indexes rallied to end the week on a fresh round of bank earnings and data showing retail sales had climbed more than expected in June.

The S&P 500 rose 1.9%, snapping a five-session losing streak. Financial stocks paced the benchmark’s gain.

The tech-focused Nasdaq Composite added 1.8% and the Dow Jones Industrial Average climbed 2.1%.

All three indexes suffered weekly losses. The S&P 500 fell 0.9%, the Nasdaq dropped 1.6% and the Dow slipped 0.2% for the week.

The market’s volatile turn may be a sign the 2022 selloff is nearing a bottom, said Brad McMillan, chief investment officer at Commonwealth Financial Network. Companies’ stock prices are now more closely aligned to projected earnings, and many investors are already accounting for the effects of rising interest rates, he said.

“We’re in a bottoming process,” Mr. McMillan said. “What you’re seeing now depends on whether you see earnings as good or bad. Yesterday was bad, but we’re still seeing expected earnings growth.”


Japan markets are closed today for the Marine Day holiday.

South Korea’s benchmark Kospi rose 0.8% to 2350.53 in early trade, led by gains in retail, financial and semiconductor stocks. Foreign and retail investors were net buyers of local equities on renewed risk appetite. The won gained against the dollar, with USD/KRW 0.6% lower at 1,318.30 on easing concerns over inflation and the Fed’s aggressive rate increases.

Hong Kong’s Hang Seng Index traded steadily at 20301.51 amid easing concerns that the Fed will make a very large rate increase later this month. The possibility that the U.S. central bank might not raise rates by 100 bps at its July meeting should provide some support to the local stock market today, KGI Research said in morning commentary. The Hang Seng Tech Index was down 1.0% at 4394.35.

China stocks were broadly higher early in morning trade, taking cue from Wall Street gains Friday and rebounding from declines spurred by data in the last session showing that Chinese economy contracted 2.6% on quarter in 2Q. The benchmark Shanghai Composite Index rose 0.3% to 3238.60, the Shenzhen Composite Index gained 0.1% to 2162.56 and the ChiNext Price Index slipped 0.1% to 2758.18. Focus will likely remain on China’s property market as home buyers threaten to stop mortgage payments for unfinished homes. “The incident may create the urgency for China to come out a quick fix to solve developers’ liquidity crisis,” OCBC analysts said in a research note.


Fears of a global recession and deepening woes in Europe are pushing the dollar higher, and few on Wall Street expect to see a change in its trajectory soon.

After the U.S. currency’s strongest first half in over a decade, investors sheltering from falling stocks and betting on U.S. economic resilience have helped power a continued rapid ascent. The WSJ Dollar Index, which measures the dollar against a basket of 16 currencies, hit a new 20-year high last week and is up nearly 2.5% this month. The euro traded below parity with the dollar for the first time since 2002, and the Japanese yen is depreciating to lows unseen since the end of the 20th century.


Gold prices were higher in early Asian trade, after their fifth straight weekly decline. The precious metal is likely to remain supported for now. “Market participants increasingly appear to expect a recession in the U.S. [and] gold should really benefit from this as a safe haven,” Commerzbank analysts said in a note. “We anticipate higher gold prices in the coming months and quarters,” they said. Spot gold rose 0.2% to $1,709.47/oz.


Oil prices fell in early Asian trade as China’s rising number of Covid-19 cases could reduce demand. Investors will likely keep a close watch on developments relating to the Nordstream 1 pipeline, to see if gas flow from Russia to Europe will resume later this week, said Stephen Innes, SPI Asset Management’s managing partner. “Oil could struggle to make new highs. And it could crash later this week if the gas flow from Nordstream1 doesn’t return, which would undoubtedly tip Europe into a deep recession,” Innes said in market commentary. Front-month WTI crude oil futures were 0.8% lower at $96.78/bbl, while Brent fell 0.7% to $100.44/bbl.

Fed Officials Preparing to Lift Interest Rates by Another 0.75 Percentage Point 
Strong Dollar Extends Gains With No End to Rally in Sight 
Earnings Season Off to Slow Start, Clouding the Outlook for Stocks 
Dow Closes Up More Than 650 Points on Retail Spending Data 
China Tries to Jump-Start Its ETF Market With Foreign Money 
UK House Prices Rose in July But Market Beginning to Cool Off 
Sen. Joe Manchin Balks at Global Minimum Tax Championed by Biden 
Debt-Market Jitters Come for Leveraged Loans 
Extreme Heat Scorches Europe, Fueling Wildfires, Drought 
Pakistan Government Loses Key Elections After Raising Gasoline Prices 
Putin Seeks to Cement Ties With Iran, Turkey in Rare Trip Abroad 
Economic War of Attrition Takes Toll on Russia, West 
Biden Places Bet on 'Long Game' in Bid to Reset Relations With Saudi Arabia 
Biden Lays Out a U.S. Middle East Vision Heavy on Diplomacy 
ANZ to Buy Australian Regional Lender Suncorp Bank for A$4.9 Billion 
Boeing Closes In on Making New Dreamliner Deliveries 
Chip Investment Decisions Await Congressional Action on $52 Billion Funding Bill 
Supermarkets, Restaurants Hire Security, Limit Hours to Combat Crime 
Grubhub Hustles to Catch Up in Business It Once Led 
Emirates, Heathrow Reach Agreement Over Passenger Cap 
Genting Singapore Shares Fall After Casino Operator Doesn't Pursue Unsolicited Approach 

(END) Dow Jones Newswires

07-17-22 2315ET

Read The Original Article