Skip to Content
Global News Select

Indian Morning Briefing: Asian Markets Mostly Lower Ahead of Fed Decision

GLOBAL MARKETS 
DJIA         34299.33   -94.42  -0.27% 
Nasdaq       14072.86  -101.29  -0.71% 
S&P 500       4246.59    -8.56  -0.20% 
FTSE 100      7172.48    25.80   0.36% 
Nikkei Stock 29370.92   -70.38  -0.24% 
Hang Seng    28599.68   -38.85  -0.14% 
Kospi         3275.96    17.33   0.53% 
SGX Nifty*   15843.50   -10.5   -0.07% 
*June contract 
 
USD/JPY  110.10-11   +0.04% 
Range    110.14   110.04 
EUR/USD  1.2117-20   -0.07% 
Range    1.2131   1.2117 
 
CBOT Wheat July $6.614 per bushel 
Spot Gold     $1,855.27    0.2% 
Nymex Crude (NY) $72.23   $1.35 
 
 
U.S. STOCKS 

U.S. stocks fell on Tuesday after fresh data showed Americans slowed their spending last month.

The Dow Jones Industrial Average dropped 94.42 points, or 0.3%, to 34299.33, while the S&P 500 lost 8.56 points, or 0.2%, to 4246.59. The Nasdaq Composite slid 101.29 points, or 0.7%, to 14072.86. The latter two set record closes on Monday.

The market is watching a two-day Federal Reserve policy meeting for any signs that the central bank is thinking about altering its monetary policy as the economy recovers from the pandemic-induced recession.

 
 
ASIAN STOCKS 

Japan's Nikkei Stock Average was 0.1% lower at 29404.37 in early trade, weighed by pharmaceutical and electrical appliance stocks. The upcoming U.S. Federal Reserve meeting was in focus for investors. Chugai Pharmaceutical declined 1.3%, Kaken Pharmaceutical fell 0.6% and Mochida Pharmaceutical was off 0.9%. Stocks of electrical appliances makers were also lower. Nidec Corp. fell 1.0%, Mabuchi Motor was off 0.3% and Fuji Electric Co. slipped 0.2%. Among IT-related stocks, NEC Networks & System Integration Corp. was off 1.1% and Systena Corp. declined 0.6%.

South Korea's benchmark Kospi was up 0.3% at 3268.68 in early trading, led by financial stocks. Investors were eyeing a policy update from the Federal Reserve due later in the day. Expectations for better net interest margins for local banks sent Woori Financial Group and Hana Financial Group 2.6% and 2.0% higher, respectively. South Korea's central has been largely viewed as intending to raise its base rate later this year. Hyundai Mipo Dockyard gained 2.2% on brisk contract wins. Index heavyweight Samsung Electronics added 0.4%. Biotech company Celltrion Inc. fell 1.2% amid profit taking.

Hong Kong stocks were lower in morning trade following weakness in U.S. equities overnight. The benchmark Hang Seng Index shed 0.3% to 28553.46. KGI Securities expected the momentum to remain muted in the near term, with trading likely to be rangebound. The brokerage estimated the initial support level for the HSI at 28450. Investors would be focusing on the U.S. Fed meeting and major Chinese economic data for May due Wednesday, it added.

Chinese stocks were down, in line with broadly lower Asian equities following weakness on Wall Street overnight. The benchmark Shanghai Composite Index fell 0.1% to 3552.80 and the Shenzhen Composite Index shed 0.7% to 2370.13. The ChiNext Price Index, which measures the performance of emerging industries and startups, dropped 1.5% to 3212.19. N-Securities expected potential further declines Wednesday, as the market corrects from a broad rally in May. The brokerage advised investors to remain cautious and adopt a wait-and-see approach before clearer signs of a recovery emerge.

FOREX 

Asian currencies consolidated against USD amid wait-and-see mood before the FOMC decision later in the global day. The Fed's dot plot, economic forecasts and Fed Chair Jerome Powell's comments would be closely scrutinized for clues on the timeline for tapering, IG said. USD/JPY was little changed at 110.10, USD/SGD was flat at 1.3277 and AUD/USD was steady at 0.7687.

METALS 

Gold edged lower amid lingering worries over possible Fed tapering ahead of the conclusion of the FOMC meeting later today. CBA said it's worth noting that when the Fed began discussing tapering QE in 2013 following the global financial crisis, gold futures responded negatively, tumbling by around 28% in 2013. The main indicator to watch was the direction of the U.S. 10-year real yield, which has a negative correlation with the price of gold and has been historically strong, CBA said. Spot gold was down 0.2% at $1,855.27/oz.

OIL SUMMARY 

Oil was higher in early Asian trade but may be pressured if the Federal Reserve has a less dovish tone at its upcoming meeting, which should send the U.S. dollar tentatively higher, Oanda said. USD often influences oil trading since the commodity is priced in U.S. dollars. "WTI crude should struggle to extend gains well beyond the $72.00 level," Oanda said. Front-month WTI crude-oil futures and front-month Brent crude oil were each 0.6% higher at $72.56/bbl and $74.41/bbl, respectively.

 
 
TOP HEADLINES 
 
Japan Exports Notched Third Month of Growth in May 
Alibaba Falls Victim to Chinese Web Crawler in Large Data Leak 
Oracle Reports Record Annual Profit, Revenue 
JPMorgan, Other Major Banks Excluded From Landmark European Bond Program 
Federal Judge Stops Biden Administration From Blocking New Oil and Gas Leases 
Russian Tycoon Oleg Deripaska Loses Suit to Lift U.S. Sanctions 
Legislation Aimed at China Seeks to Expedite Probes of Trade-Secret Thefts 
Democratic Leaders Start Talks on Second Infrastructure Bill 
RBNZ to Add Debt-to-Income Restrictions to Policy Tools 
U.S. Covid-19 Deaths Top 600,000 
FDA Authorizes More Covid-19 Vaccine Doses From Troubled Baltimore Plant 
Southwest Airlines Flights Thrown Into Disarray by Technical Problems 
Platinum Equity Strikes Deal to Buy McGraw Hill From Apollo 
Lordstown Motors Looks to Reset Its Course a Day After CEO's Exit 
DraftKings Shares Fall After Hindenburg Unveils Short Position 
Neiman Marcus Rides a Rebound in Luxury Shoppers 
PwC to Spend $12 Billion on Hiring, Expanding Expertise in AI, Cybersecurity 
Lina Khan, Critic of Large Tech Firms, to Lead Federal Trade Commission 
Biden Makes Ambassador Picks for NATO, Israel, Mexico 
Israeli Airstrikes Hit Gaza After Nationalists' March Stokes Jerusalem Tensions 
 
 

(END) Dow Jones Newswires

June 15, 2021 23:15 ET (03:15 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.