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GLOBAL MARKETS DJIA 32098.99 -184.41 -0.57% Nasdaq 12017.67 -124.04 -1.02% S&P 500 4030.61 -27.05 -0.67% FTSE 100 7427.31 -52.43 -0.70% Nikkei Stock 28103.93 224.97 0.81% Hang Seng 19676.61 -346.61 -1.73% Kospi 2436.62 9.73 0.40% SGX Nifty* 17423.50 43.0 0.25% *Sep contract USD/JPY 138.61-62 -0.08% Range 138.79 138.40 EUR/USD 0.9986-89 -0.09% Range 1.0015 0.9983 CBOT Wheat Sep $8.200 per bushel Spot Gold $1,738.38/oz 0.1% Nymex Crude (NY) $96.90 $3.84 US STOCKS
U.S. stocks were narrowly lower after Friday's washout.
The S&P 500 dropped 0.7%. The Dow Jones Industrial Average lost 0.6%, while the tech-focused Nasdaq Composite Index was off 1.0%.
Monday's moves suggest U.S. stocks could see more turbulence ahead, as traders assess Fed Chairman Jerome Powell's comments from last week.
"They're not so concerned about heading into a recession as they are in combating inflation - so that makes for a very dangerous setup," said Jerry Braakman, president and chief investment officer of First American Trust in Santa Ana, Calif.
ASIAN STOCKS
Japan's Nikkei Stock Average was 0.7% higher at 28062.64 in morning trade, recovering from a selloff on Monday which was sparked by the U.S. Fed Chair's hawkish policy stance. Energy stocks were up, tracking higher oil prices which were buoyed by the prospect of an OPEC output cut. Honda Motor rose 1.7% after it said on Monday that it plans to build a $4.4 billion electric-vehicle battery factory in the U.S. together with South Korean company LG Energy Solution.
South Korea's benchmark Kospi rose 0.5% to 2439.82 in early trade, led by gains in energy and auto stocks. Fresh corporate investment plans were supporting sentiment, prompting investors to hunt for bargains after the previous session's selloff. EV battery maker LG Energy Solution rose 3.7% after a $4.4-billion joint venture deal with Honda to build a new factory in the U.S.
Hong Kong's Hang Seng Index fell 0.5% to 19927.04 in morning trade, tracking Wall Street losses overnight. However, gains in U.S. stock futures this morning showed market sentiment is taking a breather after the recent selloff, which might spur some stabilization in Asian equity markets, Yeap Jun Rong, market strategist at IG, said in an email. The Hang Seng Tech Index was down 1.2% at 4197.59.
Chinese shares were mixed in early trade after opening flat, as Asian markets take a breather following Monday's selloff. The benchmark Shanghai Composite Index gained 0.1% to 3242.71, the Shenzhen Composite slipped 0.1% to 2145.24 and the ChiNext Price Index declined 0.6% to 2613.88. Developments relating to the PBOC's possible intervention in the yuan will be closely watched after the USD-CNY gapped up at the open on Monday amid dollar strength and reached an intraday high of just above 6.92, Commerzbank analysts said in a note. While there are no official comments yet from the central bank on the currency's weakness, a lower fix will likely signal intent to watch the pace of CNY depreciation more closely, they said.
FOREX
Asian currencies consolidated against USD in the Asian morning session, but may strengthen on rebounding risk appetite. While U.S. stocks extended losses, they bounced off their session lows overnight, suggesting risk appetite has somehow recovered, said Tina Teng, markets analyst at CMC Markets, in an email. There's also been a pause in USD's surge, which has pushed up most other major currencies, Teng added. USD/JPY edged 0.1% lower to 138.49, USD/KRW was little changed at 1,345.69 and AUD/USD was up 0.1% at 0.6911.
METALS
Gold prices edged higher in Asian trade, after declining overnight on rising Treasury yields pressuring demand for the precious metal. Gold appears to be struggling to hold ground after Fed Chair Powell pledged to implement higher interest rates over the coming months, said DailyFX currency strategist David Song in a note. "The precious metal may largely track the negative slope in the moving average as the central bank prepares U.S. households and businesses for a restrictive policy," he added. Meanwhile, market focus will likely be on upcoming monthly data on U.S. employment, which is expected later this week. Spot gold was 0.1% higher at $1,738.38/oz.
OIL SUMMARY
Oil prices were lower in early Asia trade, after rising overnight to their highest finish in a month on the prospect of an OPEC+ output cut. Though oil has been trending lower, Oanda's senior market analyst Edward Moya said the supply-side risks are too great. He noteed that in addition to possible OPEC+ cuts, there is also rising risk of war in producer Libya. Against this backdrop, "the one trade that everyone can agree upon is that the oil market will likely remain tight," Moya said in a note. "What is also helping oil today is that despite risk aversion running wild, the dollar rally is on hold," he added. Front-month WTI futures fell 0.2% to $96.78/bbl. Brent declined 0.4% to $104.70/bbl.
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(END) Dow Jones Newswires
08-29-22 2315ET
