GLOBAL MARKETS DJIA 33852.53 3.07 0.01% Nasdaq 10983.78 -65.72 -0.59% S&P 500 3957.63 -6.31 -0.16% FTSE 100 7512.00 37.98 0.51% Nikkei Stock 27843.24 -184.60 -0.66% Hang Seng 18165.94 -38.74 -0.21% Kospi 2442.28 8.89 0.37% SGX Nifty* 18743.50 -15 -0.08% *Dec contract USD/JPY 138.66-67 -0.03% Range 138.96 138.45 EUR/USD 1.0343-46 +0.14% Range 1.0355 1.0320 CBOT Wheat Dec $7.576 per bushel Spot Gold $1,749.71/oz Unch Nymex Crude (NY) $78.41 $1.17 U.S. STOCKS
U.S. stocks closed mostly lower Tuesday as investors eyed protests in China and pondered what Federal Reserve Chairman Jerome Powell might say in a coming speech.
The S&P 500 slipped 6.31 points, or 0.2%, to 3957.63 and the Nasdaq Composite lost 65.72 points, or 0.6%, to 10983.78. The Dow Jones Industrial Average added 3.07 points, or 0.01%, to 33852.53.
Mr. Powell is set to speak Wednesday at the Brookings Institution, the last major scheduled speech for Fed officials before the next rate-setting meeting on Dec. 13-14.
ASIAN STOCKS
Japanese stocks were lower in early trade, dragged by falls in electronics stocks, as caution continued over the pace of Fed's tightening. Fed Chairman Jerome Powell's speech later in the day was in focus, as well as U.S. economic data. Investors were also closely watching China's Covid measures. The Nikkei Stock Average was down 0.5% at 27883.78.
South Korea's benchmark Kospi edged 0.2% lower at 2429.26 in early trade as machinery and chemicals stocks retreated. Trading was thin as investors exercised caution ahead of a speech by Fed Chairman Jerome Powell later in the day. Any hawkish comments on the future path of rate increases from the U.S. central bank chief could undo recent gains in the equities market. The Kospi index was heading for a second monthly gain in November.
Hong Kong's Hang Seng Index was 0.6% lower at 18092.18. Investors were likely focusing on an upcoming speech from U.S. Fed Chairman Powell at a Brookings Institution event while keeping an eye on the progress of China's eventual reopening, SPI Asset Management said. China's government has said it would prioritize increasing vaccination rates among the elderly, which was being seen as a sign that the country is slowly progressing towards reopening, it said.
Mainland Chinese stocks were slightly lower in early trade, retreating from Tuesday's jump driven by Beijing officials' latest reiteration of targeted pandemic control and avoiding protracted movement curbs. The benchmark Shanghai Composite Index was down 0.2% to 3143.86, the Shenzhen Composite Index was 0.1 point lower at 2016.09, while the tech-heavy ChiNext Price Index declined 0.3% to 2332.85. While the market has likely hit a bottom, overall volatility was likely to remain high due to a lack of clear catalysts and drivers, Yintai Securities analysts said. The brokerage expected major indices to extend an oscillating and fluctuating trend in the near future.
FOREX
The NZD/USD traded at 0.6198 early Wednesday, but was well off overnight highs as FX volatility ratcheted up a notch ahead of Fed Chair Powell's speech and key U.S. data later in the week, ANZ said. "Optimism that China may be inching away from Covid-zero has lifted too, but the path is likely to be a gradual one, and US stocks came off overnight despite China's strong showing yesterday," ANZ said. It added that today is the end of the month, and for local investors in U.S. or Australian equities, which have outperformed NZ stocks, rebalancing implied NZD buying, especially against AUD.
METALS
Gold was little changed in early Asian trade, after rising overnight as the USD stabilized. The precious metal may be supported in the near term, if China's health authority offers some clear signals that the country is close to tweaking the zero-Covid policy, Oanda said. "Gold needs a strong China as it drives risk appetite and could bolster demand jewelry," it added. Spot gold was flat at $1,749.71/oz.
OIL SUMMARY
Oil prices were higher in early Asian trade, extending overnight gains amid hopes that China, the world's largest oil importer, might loosen its Covid-19 restrictions. "The hope stems from the conciliatory tone taken by China's National Health Commission, particularly the concession that there was an excessive implementation of Covid controls," CBA said. Market focus will also be on the OPEC+ meeting on Dec. 4, where members will decide on oil-production levels. "We think the group will keep output levels unchanged, particularly given the group is set to meet virtually," it said. Front-month WTI and Brent futures were both 1.0% higher at $78.91/bbl and $85.06/bbl, respectively.
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(END) Dow Jones Newswires
11-29-22 2216ET
