GLOBAL MARKETS DJIA 36290.32 38.30 0.11% Nasdaq 15188.39 34.94 0.23% S&P 500 4726.35 13.28 0.28% FTSE 100 7551.72 60.35 0.81% Nikkei Stock 28488.88 -276.78 -0.96% Hang Seng 24506.91 104.74 0.43% Kospi 2970.71 -1.77 -0.06% SGX Nifty* 18369.00 153.0 0.84% *Jan contract USD/JPY 114.64-65 +0.00% Range 114.71 114.50 EUR/USD 1.1444-47 +0.03% Range 1.1450 1.1436 CBOT Wheat March $7.576 per bushel Spot Gold $1,824.44/oz -0.1% Nymex Crude (NY) $82.62 $1.40 US STOCKS
U.S. inflation hit its fastest pace since 1982, but stocks took the news in stride.
The S&P 500 gained 0.3%, while the Dow Jones Industrial Average added 0.1%. The tech-heavy Nasdaq Composite Index added 0.2%.
Markets have been focused on anything that could shift expectations for the Federal Reserve to begin lifting interest rates as soon as March.
“I do think the markets are believing that inflation is on the cusp of peaking,” said Darrell Cronk, chief investment officer for wealth and investment management at Wells Fargo.
Luca Paolini, chief strategist at Pictet Asset Management, said he expected inflation to reach a peak this quarter, but is waiting to see if higher inflation weighs on profits in the coming earnings season.
ASIAN STOCKS
Japanese stocks were lower, dragged by falls in electronics stocks, as the yen strengthened and economic uncertainty continued amid the spread of the Omicron variant. Earnings from Fast Retailing and Seven & I Holdings due later in the day will be closely watched. Investors were also paying attention to Covid-19 infection trends and the government’s countermeasures. The Nikkei Stock Average was down 0.5% at 28611.04.
South Korea’s Kospi edged up 0.1% to 2974.22 in early trade. Steel and energy stocks were higher on upbeat earnings outlooks and rising oil prices. Investors took in stride the high U.S. inflation data and refrained from making big bets ahead of the Bank of Korea’s policy meeting Friday. USD/KRW was trading lower at 1,186.50, versus 1,190.50 late Wednesday, helping boost appetite for local equities.
Hong Kong’s Hang Seng Index was up 0.6% at 24536.97, with gains led by energy-related stocks. Property stocks may continue to decline on lingering concerns, with payment deadlines looming for China Evergrande and Shimao Group, IG said.
Chinese stocks slipped in early trade, reversing course after yesterday’s rebound, as renewable energy-related sectors weighed. The Shanghai Composite Index declined 0.2% to 3590.73, the Shenzhen Composite Index fell 0.9% and the ChiNext Price Index was 1.2% lower. Chasing Securities expected investors to be cautious as the Lunar New Year approaches, pointing to weak market transaction volumes on Wednesday.
FOREX
Asian currencies consolidated against USD in the Asian morning session, but may be supported by market participants seeking to take profit on long USD positions. As the roadmap of Fed tightening gets clear, some traders may look for an exit and profit-taking opportunities, DailyFX said. A soft USD is generally positive to stocks, commodities and emerging-market assets, DailyFX added. USD/KRW rose 0.2% to 1,188.38, USD/SGD edged 0.1% lower to 1.3456, while AUD/USD was little changed at 0.7286.
METALS
Gold prices were slightly lower in early Asian trade. Gold could remain above $1,800/oz as Treasury yields seem unlikely to rally much higher until markets become more certain on the Federal Reserve’s balance sheet reduction process, which won’t happen until a few more meetings, Oanda said. Spot gold was down 0.1% to $1,824.44/oz.
OIL SUMMARY
Oil prices were higher in early Asian trade amid supply disruptions which could keep stockpiles tight, ANZ said. EIA on Wednesday reported that crude oil stockpiles fell to a two-year low of 4.55 million barrels a day, it said. The International Energy Agency has also said that demand for oil may remain more robust than what most market observers expect, due to the effect of the Omicron variant being milder than expected. The front-month WTI contract rose 0.2% to $82.84/bbl, while the front-month Brent contract was 0.3% higher at $84.88/bbl.
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(END) Dow Jones Newswires
January 12, 2022 22:15 ET (03:15 GMT)
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