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Indian Morning Briefing: Asian Markets Mixed Ahead of U.S. Nonfarm Payrolls Data

DJIA         35064.25  271.58   0.78% 
Nasdaq       14895.12  114.58   0.78% 
S&P 500       4429.10   26.44   0.60% 
FTSE 100      7120.43   -3.43  -0.05% 
Nikkei Stock 27760.34   32.22   0.12% 
Hang Seng    26198.42   -6.27  -0.02% 
Kospi         3268.50   -7.63  -0.23% 
SGX Nifty*   16326.00   15.5    0.10% 
*August contract 
USD/JPY  109.86-87   +0.08% 
Range    109.89   109.75 
EUR/USD  1.1819-22   -0.12% 
Range    1.1838   1.1820 
CBOT Wheat Sept $7.126 per bushel 
Spot Gold      $1,800.81   0.2% 
Nymex Crude (NY)  $69.10  $0.95 

Stocks rallied broadly on Thursday, as shares of banks and technology and travel companies rose.

The S&P 500 gained 26.44 points, or 0.6%, to finish at 4429.10, rebounding after the broad market index closed down 0.5% on Wednesday. The Dow Jones Industrial Average added 271.58 points, or 0.8%, to end at 35064.25.

The technology-heavy Nasdaq Composite rose 114.58 points, or 0.8%, to 14895.12.

Both the S&P 500 and the Nasdaq Composite finished at all-time highs, with the broad benchmark index notching its 43rd record close of the year. The Nasdaq Composite has reached 27 records in 2021. The Dow is hovering just 0.2% below its closing high last reached July 26.


Japan's Nikkei Stock Average was up 0.3% at 27810.74, led by gains in electronics stocks as hopes continue for an earnings recovery. Olympus Corp. was up 6.0% after it boosted fiscal-year revenue and net-profit views. Meanwhile, Nintendo was down 7.6% after first-quarter net profit fell 13% on year. Earnings and Covid-19 infection trends were being closely watched.

South Korea's benchmark Kospi edged up 0.1% to 3278.52 in early trade, led by travel and banking stocks. Sentiment was supported by renewed economic recovery hopes after data showed that the country had run a current-account surplus for 14 straight months on brisk exports. Somewhat more muted concerns about the Delta variant of Covid-19 were also helping boost sentiment. KakaoBank jumped 20% in its first day of trading on solid demand for the digital bank stock.

Hong Kong stocks declined in early trade, as losses by real-estate developers weigh. The benchmark Hang Seng Index fell 0.6% to 26072.12, while the Hang Seng TECH Index was down 0.2%. The biggest loser was China Mengniu Dairy, which was 3.6% lower. Car maker BYD was the biggest gainer, up 3.7%.

Chinese stocks fell amid concerns over the spread of the Covid-19 Delta variant in the country. Worries over a regulatory clampdown by China authorities were also likely to remain, with the latest state media reports taking aim at the spirits and e-cigarette industries, IG said. Meanwhile, U.S-China trade relations would also be in focus, following news that U.S. business groups have called on President Biden to restart trade talks with China. The Shanghai Composite Index was 0.3% lower at 3457.41 and the Shenzhen Composite Index fell 0.3% to 2439.29. The ChiNext Price Index--a measure for emerging industries and startups--declined 0.9% to 3500.39.


Most Asian currencies were weaker against the USD ahead of U.S. nonfarm payrolls report due later in the global day. Following this week's hawkish comments from Fed Vice Chair Clarida, it certainly feels this is a big jobs report that carries real meaning, Pepperstone said. Hence, a reading above one million jobs which takes the unemployment rate nicely lower on a good participation rate should cause a sharp sell-off in bonds and put real upside in USD, Pepperstone added. USD/SGD edged 0.1% higher to 1.3519 and USD/JPY was also 0.1% higher at 109.87 while USD/KRW was little changed at 1,142.81.


Gold declined in early Asian trade after U.S. Treasury yields climbed overnight from lows not seen since February. The upcoming U.S. nonfarm payroll report would likely be the main driver of gold's short-term direction, OCBC said. "A stronger than expected jobs report may send gold below the $1,800 support on heightened expectations of an earlier rate hike cycle," it added. Spot gold was 0.2% lower at $1,800.81/oz.


Oil prices declined in early Asian trade, after rising overnight on U.S. trade data that showed the country's crude exports improved in June. The demand outlook may be weighed down in the near term due to concerns over the Covid-19 Delta variant that spread has across 15 provinces in China, Oanda said. China is one of the largest oil importers. "The Chinese vaccines are less effective than the mRNA vaccines and this could mean a slower reopening," Oanda said. It expected WTI crude to consolidate in a $67/bbl-$71/bbl trading range for now. Front-month WTI crude oil futures and Brent were each 0.3% lower at $68.90/bbl and $71.08/bbl, respectively.

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(END) Dow Jones Newswires

August 05, 2021 23:15 ET (03:15 GMT)

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