GLOBAL MARKETS DJIA 31500.68 823.32 2.68% Nasdaq 11607.62 375.43 3.34% S&P 500 3911.74 116.01 3.06% FTSE 100 7208.81 188.36 2.68% Nikkei Stock 26834.34 342.37 1.29% Hang Seng 22142.70 423.64 1.95% Kospi 2410.27 43.67 1.85% SGX Nifty* 15884.00 183 1.17% *June contract USD/JPY 134.87-88 -0.25% Range 135.22 134.53 EUR/USD 1.0559-62 +0.03% Range 1.0576 1.0552 CBOT Wheat July $9.236 per bushel Spot Gold $1,828.36/oz 0.1% Nymex Crude (NY) $107.40 $3.13 U.S. STOCKS
Stocks rallied on Friday after fresh economic data tempered investors’ expectations of steep Federal Reserve interest-rate hikes, as major market indexes notched their first weekly gains after three consecutive weeks of losses.
The Dow Jones Industrial Average surged 823.32 points, or 2.7%, to close at 31500.68. The S&P 500 climbed 116.01, or 3.1%, to 3911.74, in its biggest one-day gain in percentage terms in more than two years. The technology-heavy Nasdaq Composite added 375.43, or 3.3%, to 11607.62.
Indexes have bounced back after the S&P 500 last week tumbled into a bear market, defined as a 20% drop from a recent high. The broad market index finished the week up 6.4%, though it is still down about 18% from its last record close in January.
The Dow industrials gained 5.4% for the week, while the Nasdaq rallied 7.5%. All three indexes recouped their losses from the previous week.
ASIAN STOCKS
Japan’s Nikkei Stock Average was up 0.9% at 26738.36, led by gains in machinery, energy and financial stocks as fears eased somewhat about aggressive Fed interest-rate increases. Air-conditioner maker Daikin Industries rose 2.3%, energy explorer Inpex gained 1.5% and Dai-ichi Life Holdings jumped 2.7%. A Group of Seven meeting was in focus as investors pay attention to new economic measures against Russia and their implications for commodity prices.
South Korea’s Kospi rose 2.1% to 2416.71, led by gains in auto, tech and shipbuilding stocks. Sentiment was supported by growing risk appetite and easing concerns about a possible U.S. recession and aggressive Fed rate increases. USD/KRW was 0.6% lower at 1,290.00 on risk-on sentiment. Index heavyweight Samsung Electronics was 0.5% higher. Car makers Hyundai Motor and Kia advanced 4.6% and 3.6%, respectively. Daewoo Shipbuilding & Marine Engineering rose 2.6%. Vaccine maker SK Bioscience rose 2.4%. State utility Korea Electric Power was 1.1% higher ahead of the government’s decision on tariff increases later in the day.
Hong Kong shares rose, with the benchmark Hang Seng Index 2.0% higher at 22145.38, as gains on Wall Street supported the city’s equity market. Hong Kong’s stocks were also likely to get additional support from window-dressing activities ahead of the end of the half-year period, analysts from KGI Securities said in a note. Gains were broad-based, led by Geely Automobile’s 6.5% gain. Haidilao International rose 6.2%, Sands China advanced 5.3% and Hong Kong Exchanges and Clearing was up 4.4%. A notable decliner was Xinyi Solar, losing 3.2% after warning that its 1H profits would decline.
Chinese stocks rose in early trade, tracking regional markets. Market sentiment has clearly improved, especially in the auto sector which has been boosted by policy measures and sales data, Soochow Securities said in a note. BYD Co. and SAIC Motor each gained 0.4%, but Great Wall Motor was down 1.3%. Other notable gainers include China Tourism Group Duty Free, jumping 7.2% and Midea Group rising 3.8%. Property developers were mixed. China Vanke added 0.3% but Gemdale Corp. shed 1.3%. The Shanghai Composite Index rose 1.1% to 3385.70, the Shenzhen Composite Index added 0.9% and the ChiNext Price Index was 1.1% higher.
FOREX
Asian currencies were mixed against USD in the morning Asian session, but could strengthen as concerns for aggressive Fed rate-increase eased somewhat. Declining commodity prices to factor in recession fears have translated into optimism that headline inflation could turn lower in coming months and eased some pressure off the Fed for its tightening process, said IG market strategist Yeap Jun Rong in an email. USD/KRW fell 0.4% to 1,284.18 and USD/SGD dropped 0.2% to 1.3856, while AUD/USD slipped 0.4% to 0.6918 and USD/CNH edged 0.1% higher to 6.6881.
METALS
Gold prices were higher in early Asian trading, after G-7 countries said they would stop buying Russian gold. “There could be some headline bounce at the open” in response to the move, SPI Asset Management managing partner Stephen Innes said in a note. That said, the move might not support bullion prices in the long term because Russia was already likely not exporting much of its domestic production, Innes said. “It was assumed that Russia would keep domestic production at home to soak up surplus USD and prevent excessive appreciation of the ruble,” he said. Spot gold was recently up 0.1% to $1,828.36 an ounce.
OIL SUMMARY
Oil was lower in early Asian trading as the G-7 mulls a price cap on Russian oil imports in a bid to hurt Moscow’s export revenues. This would be done by only allowing transportation and insurance of Russian crude oil and refined products that are below a yet-to-be-determined price, thereby bringing down the effective price of the exported oil, CBA analyst Vivek Dhar said in a note. That said, Dhar said it was unclear whether this would work amid possible retaliatory actions from Russia if such an agreement passes. Front-month Brent dropped 1.3% to $111.62/bbl; WTI fell 1.5% to $105.98/bbl.
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(END) Dow Jones Newswires
June 26, 2022 23:15 ET (03:15 GMT)
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