GLOBAL MARKETS DJIA 34189.97 216.96 0.64% Nasdaq 11001.10 69.43 0.64% S&P 500 3983.17 13.56 0.34% FTSE 100 7794.04 69.06 0.89% Nikkei Stock 26137.82 -312.00 -1.18% Hang Seng 21494.12 -19.98 -0.09% Kospi 2388.97 23.87 1.01% SGX Nifty* 17957.00 +39.0 0.22% *Jan contract USD/JPY 129.10-11 -0.15% Range 129.43 128.71 EUR/USD 1.0845-48 -0.06% Range 1.0870 1.0833 CBOT Wheat March $7.426 per bushel Spot Gold $1,898.62/oz 0.2% Nymex Crude (NY) $78.22 $0.81 US STOCKS
U.S. stocks climbed after the latest inflation data showed cooling price pressures for the sixth consecutive month, likely keeping the Federal Reserve on track to slow its pace of interest-rate increases.
The S&P 500 added 0.3%, while the Dow Jones Industrial Average gained 0.6%. The technology-heavy Nasdaq Composite Index rose 0.6%.
Consumer-price inflation slowed to 6.5% in December, down from 7.1% in November, the Labor Department said. One measure of services inflation - excluding energy services and the cost of owning or renting a home - offered encouragement that tighter monetary-policy is proving effective.
Wall Street widely expects the central bank to raise its benchmark rate target by a quarter of a percentage point to a range between 4.5% and 4.75% on Feb. 1.
ASIAN STOCKS
The Nikkei Stock Average was down 0.5% at 26312.40 in early trade, dragged by falls in auto stocks, as the yen strengthened against the dollar. USD/JPY was at 128.94, down from 131.63 as of Thursday's Tokyo stock market close. Bank stocks were higher on speculation the Bank of Japan will tweak its easing program again next week. The newest 10-Year Japanese government bond yield rose 3 basis points to 0.530%. Bond yields remained in focus.
South Korea's benchmark Kospi gained 0.6% to 2379.34 in early trade, led by gains in airline and consumer stocks. Investor sentiment was buoyed by Wall Street's gains overnight, after latest U.S. December inflation data showed a sixth straight monthly deceleration, likely keeping the Fed on track to slow its pace of interest-rate increases.
Chinese shares opened higher, tracking overnight gains on Wall Street and as global investors sentiment was buoyed after soft U.S. inflation data raised hopes for more muted rate increases by the Federal Reserve. Auto-related industry and energy stocks were leading the gains. The Shanghai Composite Index was 0.2% higher at 3170.35, the Shenzhen Composite Index was up 0.3% and the ChiNext Price Index was 0.7% higher.
Hong Kong's Hang Seng Index edged 0.2% higher to 21564.40 in early trade, supported by Wall Street gains overnight as sentiment was buoyed by upbeat inflation data. Further evidence of cooling U.S. inflation has boosted bets the Fed may slow the pace of its future rate increases, says Phillip Securities Research team in a morning commentary. The Hang Seng Tech Index was little changed at 4485.64.
FOREX
The JPY strengthened against most G-10 and Asian currencies in the Asian morning session. JPY gains can be attributed to expectations the BOJ will review its accommodative monetary policy next week, said MUFG Bank senior currency analyst Jeff Ng in a research report. This is keeping upward pressure on JGB yields, with market participants looking out for unscheduled bond-buying operations by the BOJ, Ng said. USD/JPY was down 0.2% at 128.98 after earlier touching 128.71, its lowest intraday level since June 2022, according to FactSet. AUD/JPY dropped 0.2% to 89.84 and EUR/JPY was down 0.2% at 139.99.
METALS
Gold prices were a tad higher in early Asian trade, slightly extending gains, following the release of U.S. CPI data. The data showed that inflation is starting to cool, which could indicate that the U.S. Federal Reserve could slow down its pace of interest-rate increases, analysts said. Slower rate rises are viewed as broadly positive for the non-interest bearing metal. However, given that gold prices have been climbing steadily since November, they could run out of momentum in the short-term, Oanda market analyst Edward Moya said in a note. The analyst thinks gold will need to have a daily close above $1,900 to move even higher. Spot gold was up 0.2% at $1,898.62/oz.
OIL SUMMARY
Crude-oil prices slipped in early Asian trade after gains in the previous session, following the release of soft U.S. inflation data. Crude-oil prices are likely to be up for the week, said Charu Chanana, a market strategist from Saxo in a note. The risk-on tone for the commodity is due to China's steady commitment to reopen its economy and Chinese buyers becoming more active in the physical market after import quotas were increased, she added. The front-month WTI contract was down 0.2% at $78.24/bbl, while the Brent crude contract was 0.3% lower at $83.82/bbl.
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(END) Dow Jones Newswires
01-12-23 2215ET
