Indian morning briefing: Asian markets are mostly down amid expectations of an anticipated Fed rate hike


GLOBAL MARKETS 
DJIA         36231.66    -4.81  -0.01% 
Nasdaq       14935.90  -144.96  -0.96% 
S&P 500       4677.03   -19.02  -0.41% 
FTSE 100      7485.28    34.91   0.47% 
Nikkei Stock CLOSED 
Hang Seng    23667.61   174.23   0.74% 
Kospi         2924.81   -30.08  -1.02% 
SGX Nifty*   17935.00    78      0.44% 
*Jan contract 
 
USD/JPY  115.75-76   +0.20% 
Range    115.77   115.55 
EUR/USD  1.1344-47   -0.16% 
Range    1.1363   1.1345 
 
CBOT Wheat March $7.584 per bushel 
Spot Gold    $1,793.92/oz  -0.1% 
Nymex Crude (NY) $79.09   -$0.37 
 
 
U.S. STOCKS 

US stocks were to open slightly lower on Monday. On Sunday night, Dow Jones Industrial Average futures fell 62 points, or 0.2%, while S&P 500 futures fell 0.3% and Nasdaq Composite futures fell 0.3% .

The S&P 500 slipped for the fourth consecutive session, dropping 19.02 points, or 0.4%, to 4,677.03 on Friday. The Nasdaq Composite Index lost 144.96 points, or around 1%, to 14,935.90. The Dow Jones Industrial Average lost 4.81 points, or less than 0.1%, to 36,231.66.

The S&P 500 ended the week with a loss of 1.9%, while the Dow Jones Industrial Average lost 0.3%. The tech-rich Nasdaq Composite fell 4.5%, its worst week since February.

 
 
ASIAN STOCKS 

South Korea’s Kospi was down 1.0% to 2,925.07 at the start of trading, led by tech and retail stocks. Slower-than-expected US job growth in December weighed on investor morale as concerns persisted over rising inflation and tightening policies. The heavyweight of the Samsung Electronics index lost 1.2%.

Hong Kong’s Hang Seng Index rose 0.1% to 23,523.90 in morning trading, and KGI Securities expects the index to likely move sideways in the near term as the US Federal Reserve increases its prices. rate as of March. Morning gains were widespread, with CSPC Pharmaceutical Group up 2.5%, while lender HSBC Holdings rose 1.4% and sportswear maker Shenzhou International rose 1.2%. The declines include China Life Insurance, which was down 2.1% after the insurer said its chairman was under disciplinary review by Chinese officials.

Chinese stocks fell in morning trading, weighed on by liquor makers and travel-related sectors, offsetting gains among minors. Overall, the market is expected to trend higher over the medium term amid expectations of looser liquidity conditions, but any near-term rebound from recent weaknesses appears to be limited, Soochow Securities said. The Shanghai Composite Index fell 0.6% to 3,558.74, the Shenzhen Composite Index slipped 0.8%, and the ChiNext Price Index fell 1.3%.

Markets in Japan are closed on Mondays for a public holiday.

FOREX 

The Malaysian ringgit could weaken further against the US dollar this week due to lingering concerns from Omicron, Kenanga Research said. He expected the USD / MYR to trade around the 4.21 level after the pair broke the 4.20 level last week as fears of a rate hike offset rising prices. crude oil. Kenanga said the ringgit could face another round of massive selling if US inflation data for December, due on January 12, shows another spike, increasing the likelihood that the Fed will begin political normalization sooner rather than later. . USD / MYR was down 0.2% at 4.2020.

METALS 

Gold was slightly lower at the start of the Asian trade. Gold prices seemed likely to stay below the $ 1,800 / oz level, with 10-year Treasury yields rising from 1.53% to 1.75%, Oanda said. The Federal Reserve also appears likely to hike rates in March after the latest jobs report, Oanda added. Spot gold fell 0.1% to $ 1,793.92 / oz.

OIL SUMMARY 

Oil prices were slightly lower in early Asian trade. As oil futures closed lower on Friday, they posted a weekly gain of around 5.0%, amid signs of resilient demand as road traffic data held steady over key markets, ANZ said. Oil prices also rose after Kazakhstan curtailed production of the product amid civil unrest and protests, he noted. WTI’s first month contract was down 0.3% to $ 78.68 / bbl, while the Brent crude contract was down 0.2% to $ 81.58 / bbl.

 
 
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(END) Dow Jones Newswires

January 09, 2022 10:15 p.m. ET (3:15 a.m. GMT)

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


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