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GLOBAL MARKETS DJIA 32394.25 -37.83 -0.12% Nasdaq 11716.08 -52.76 -0.45% S&P 500 3971.27 -6.26 -0.16% FTSE 100 7484.25 12.48 0.17% Nikkei Stock 27638.67 120.42 0.44% Hang Seng 20253.65 469.00 2.37% Kospi 2434.54 -0.40 -0.02% SGX Nifty* 17072.00 -6 -0.04% *April contract USD/JPY 131.62-63 +0.57% Range 131.67 130.77 EUR/USD 1.0840-43 -0.05% Range 1.0853 1.0837 CBOT Wheat May $6.996 per bushel Spot Gold $1,970.98/oz -0.1% Nymex Crude (NY) $73.35 $0.54 U.S. STOCKS
Technology stocks slid Tuesday, dinged by rising bond yields, as an ebbing of the recent turmoil in the banking sector shifted investors' attention back to the threat of further interest-rate increases by the Federal Reserve.
The tech-heavy Nasdaq Composite fell 52.76 points, or 0.4%, to 11716.08. The broad S&P 500 index declined 6.26 points, or 0.2%, to 3971.27, and the Dow Jones Industrial Average slipped 37.83 points, or 0.1%, to 32394.25.
"People are waiting to see if there's going to be another leg to this banking story, and there's an aspect to it that no news is good news," said Andrew Hollenhorst, chief U.S. economist at Citi. "But if the financial-stability concerns abate a bit, the attention shifts back to inflation."
ASIAN STOCKS
Japanese stocks were higher, led by gains in auto and chip stocks, as concerns recede over the recent turmoil in the global banking industry for now. Among individual movers, SoftBank Group gained 5.5% after Alibaba Group Holding's plan to split itself into six independently run companies led to the stock's surge overnight. Investors remained focused on any signs of weakness in the banking sector ahead of the fiscal year-end for Japanese companies. The Nikkei Stock Average was up 0.2% at 27584.51.
South Korea's benchmark Kospi was 0.14% lower after opening slightly higher at 2437.12 in early mixed trade. While airline and retail stocks advanced, electronics and semiconductor shares retreated. Market expectations for better corporate earnings and pent-up travel demand following China lifting its pandemic curbs were sending some consumer stocks higher. But Wall Street's fall overnight on profit taking in tech stocks was capping the gains.
Hong Kong's benchmark Hang Seng Index opened 2.9% higher at 20348.64, driven by tech stocks. Sentiment was buoyed by news that Alibaba Group Holding plans to restructure itself into six independently run companies that could seek separate IPOs. Shares of the Chinese e-commerce giant was up 15%. The Hang Seng Tech Index was up 4.2%, with all the big names increasing. Hang Seng Bank was the only loser in the HSI, down 0.4%.
Chinese shares were higher in early trade, in tandem with broad gains among other Asian equities, as worries over the banking sector eased. The benchmark Shanghai Composite Index added 0.2% to 3252.44, the Shenzhen Composite Index rose 0.2% to 2108.85 and the ChiNext Price Index was 0.1% higher at 2371.10. Liquor stocks were higher, with Kweichow Moutai gaining 0.8% and Wuliangye Yibin adding 0.8%. China Construction Bank's A shares rose 0.5% following its plan to raise CNY5.0 billion via an issuance of 10-year fixed rate bonds. BYD Co. gained 1.6% after its 2022 net profit rose sharply on higher revenue and better profit margins.
FOREX
JPY weakened against G-10 and Asian currencies in the morning session, as risk-on sentiment aided by gains across most regional equity markets and in U.S. stock futures undermined the safe-haven appeal of the Japanese yen. The lack of any substantive developments in the banking backdrop has caused markets to be relatively calm by the standards of recent weeks, said NAB. The U.S. consumer confidence index released overnight also suggests that the consumer has taken little notice of recent bank failures, it added. USD/JPY rose 0.6% to 131.63, AUD/JPY gained 0.4% to 88.11 and EUR/JPY was up 0.6% at 142.73.
METALS
Gold prices were a tad lower in early Asian trade, as financial sector jitters eased. Fears of a banking contagion spilling over seemed to have calmed following First Citizens' partial takeover of the collapsed Silicon Valley Bank over the weekend, said DailyFX. Traders were now looking ahead to U.S. growth and inflation data due later in the week, he said. The figures would be watched for clues on the Fed's potential rate path, expectations of which often set the direction for the precious metal. Spot gold was down 0.1% at $1,970.98/oz.
OIL SUMMARY
Crude oil prices rose in early Asian trade amid supply disruptions. Brent crude likely gained after a disruption to Iraq exports, while OPEC was showing no signs of adjusting oil production, said ANZ analysts. With an OPEC meeting coming next week, the group said it would continue to stay the course amid the turbulence in markets, ANZ added. Traders may be keeping a close watch for Chinese manufacturing PMI data due on Friday, which will provide clues about the outlook for oil demand, said CMC Markets. The front-month WTI futures contract rose 0.8% to $73.76/bbl while front-month Brent crude was up 0.5% at $79.03/bbl.
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(END) Dow Jones Newswires
03-28-23 2315ET
