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Indian Morning Briefing: Asian Markets Mostly Lower; Focus on FOMC

GLOBAL MARKETS 
DJIA         35058.52   -85.79  -0.24% 
Nasdaq       14660.58  -180.14  -1.21% 
S&P 500       4401.46   -20.84  -0.47% 
FTSE 100      6996.08   -29.35  -0.42% 
Nikkei Stock 27594.64  -375.58  -1.34% 
Hang Seng    24955.15  -131.28  -0.52% 
Kospi         3226.39    -6.14  -0.19% 
SGX Nifty*   15780.00    38      0.24% 
*July contract 
 
USD/JPY  109.80-81   +0.01% 
Range    109.91   109.74 
EUR/USD  1.1822-25   +0.05% 
Range    1.1826   1.1813 
 
CBOT Wheat Sept $6.744 per bushel 
Spot Gold     $1,803.52/oz  0.3% 
Nymex Crude (NY) $71.73   -$0.18 
 
 
U.S. STOCKS 

U.S. stocks slipped from records Tuesday, breaking a five-session winning streak for all three major indexes.

Losses in big tech stocks like Amazon.com and Google parent Alphabet weighed on the market, while shares of airlines and cruise companies also lagged behind.

The S&P 500 dropped 20.84 points, or 0.5%, to 4401.46. The Dow Jones Industrial Average slid 85.79 points, or 0.2%, to 35058.52. The tech-heavy Nasdaq Composite fell 180.14 points, or 1.2%, to 14660.58, its largest one-day decline since May. The three indexes closed at all-time highs Monday.

A powerful rally has sent the S&P 500 up 17% in 2021, while the Nasdaq Composite has gained 14%.

 
 
ASIAN STOCKS 

Japanese stocks were lower in morning trade, dragged by tech and electronics stocks as concerns grow about a slow recovery from the Covid-19 pandemic. Tokyo on Tuesday set a daily record for Covid-19 cases. Investors were focusing on Covid-19 infection trends as well as earnings. Canon Inc. and Nissan Motor are set to report results later in the day. The Nikkei Stock Average was down 0.8% at 27749.59.

South Korea's benchmark Kospi was down 0.1% at 3230.15 in early trading, dragged by losses in electronics and internet stocks. Recent falls in Chinese stocks on heightened regulatory risk were weighing on investor sentiment, said Kiwoom Securities. Trading also remained lackluster ahead of the U.S. Federal Reserve's meeting outcome later Wednesday.

Hong Kong stocks were gaining ground after three sessions of heavy losses, as the Chinese tech sector rebounded. The Hang Seng TECH Index was 1.6% higher at 6350.77, though still 22% lower this month. Meituan jumped 6.7%, Tencent Holdings added 0.4% and Alibaba Group rose 0.5%. New Oriental Education, recently a target of Beijing's regulators, surged 9.7%. The Hang Seng Index was 0.4% higher at 25197.80.

Chinese stocks fell in early trade, extending losses into a fourth session, as gains for banks were outweighed by weakening auto shares. Bohai Securities said new variants of the Covid-19 virus could prolong the pandemic-driven chip shortages in the auto industry. The Shanghai Composite Index slipped 1.5% to 3331.22, the Shenzhen Composite Index was 2.0% lower and the ChiNext Price Index dropped 0.6%.

FOREX 

Most Asian currencies consolidated against USD as sentiment in the region was dented by China's regulatory crackdown on several industries and the Covid-19 resurgence, IG said. Investors were also waiting for the outcome of the FOMC's two-day meeting and a possible timeline for tapering of monetary stimulus, IG said. USD/SGD edged 0.1% lower to 1.3592 while AUD/USD was little changed at 0.7360. USD/KRW was steady at 1,154.12.

METALS 

Gold rose in early Asian trade, but gains may be limited ahead of the outcome of the FOMC's two-day meeting later in the global day. There's investor caution ahead of the meeting which could offer details on stimulus tapering, Phillip Futures said. The Fed was likely to affirm that a strong U.S. recovery and plans for an eventual policy shift are both ongoing, it added. Spot gold was 0.3% higher at $1,803.52/oz.

OIL SUMMARY 

Oil rose in Asia ahead of weekly U.S. petroleum inventory data and the outcome of the FOMC's two-day meeting later today. The market was eyeing weekly U.S. inventories, with expectations of a 2.5-million-barrel drawdown, ANZ said. Also, markets were keenly awaiting the statement following the conclusion of the FOMC meeting, though it is widely expected that the Fed won't be in a hurry to adjust its accommodative monetary policy, ANZ said. Front-month WTI crude oil futures were up 0.7% at $72.13/bbl. Front-month Brent crude oil futures were 0.5% higher at $74.87/bbl.

 
 
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(END) Dow Jones Newswires

July 27, 2021 23:15 ET (03:15 GMT)

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