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Indian Morning Briefing: Asian Markets Decline; China Economic Activity Cooled in August

GLOBAL MARKETS 
DJIA           34577.57   -292.06    -0.84% 
Nasdaq         15037.76    -67.82    -0.45% 
S&P 500         4443.05    -25.68    -0.57% 
FTSE 100        7034.06    -34.37    -0.49% 
Nikkei Stock   30350.74   -319.36    -1.04% 
Hang Seng      25166.27   -335.96    -1.32% 
Kospi           3141.25     -7.58    -0.24% 
SGX Nifty*     17404.50     13.5      0.08% 
*Sep contract 
 
USD/JPY    109.63-64    -0.05% 
Range      109.75   109.55 
EUR/USD    1.1804-07    +0.02% 
Range      1.1815   1.1801 
 
CBOT Wheat Sep   $6.850 per bushel 
Spot Gold  $1,802.94/oz   -0.1% 
Nymex Crude (NY)    $70.37     -$0.08 
 
 
US STOCKS 

Stocks fell, continuing their recent pullback even after fresh data showed that inflation climbed at a slower pace than economists expected in August.

The S&P 500 declined 0.6%, while the Dow Jones Industrial Average shed 0.8%. The technology-heavy Nasdaq Composite fell around 0.5%. The market has broadly pulled back this month amid concerns that rising cases of the Delta variant of Covid-19 could weigh on economic activity and that stocks have rallied for too long without a correction. Through Monday, the S&P 500 fell in five of the past six trading sessions.

The Labor Department's consumer-price index rose a seasonally adjusted 0.3% in August from July--lower than the 0.4% that economists surveyed by The Wall Street Journal expected.

Investors have been closely following inflation data for signs of whether the Federal Reserve might begin to scale back its easy-money policies. Tuesday's inflation reading appeared unlikely to change the Fed's plans.

 
 
ASIAN STOCKS 

Japanese stocks were broadly lower on some profit-taking after the benchmark Nikkei Stock Average hit a 31-year high on Tuesday, and as the yen strengthened on lower U.S. Treasury yields overnight. Investors will focus on any developments over the election of a new-ruling party chief, set for later this month. The Nikkei Stock Average was down 0.6% at 30499.45.

South Korea's Kospi was up 0.2% at 3155.14 in early trade after opening lower, helped by gains in tech and consumer stocks. Tech stocks recovered from some recent regulatory pressure. Focus will likely be on the Bank of Korea's next move, after minutes from the latest policy meeting published Tuesday showed that members of the central bank's rate-setting board said there's a need to conduct a rate increase without delay amid growing risks from financial imbalances.

Hong Kong shares were down in morning trade, driven lower by casino operators after the Macau government laid out plans for the future of the gambling industry, including tighter regulatory scrutiny over casinos. The Hang Seng Index dropped 0.9% to 25277.48, as sentiment was also dragged down by Wall Street's losses overnight. The Hang Seng TECH Index slid 1.5% to 6407.09.

Chinese stocks were lower in early trade, tracking broad declines among other Asian equities. The Shanghai Composite Index was 0.4% lower at 3649.49, the Shenzhen Composite Index was down 0.6% at 2475.03, while the ChiNext Price Index--a measure for emerging industries and startups--was 0.9% lower at 3207.24. The Covid-19 outbreak in China's Fujian province may pressure the country's economic recovery, as China's aggressive measures to tackle the virus based on a zero-Covid policy could result in some near-term economic impact, IG said.

FOREX 

JPY strengthened against G-10 and Asian currencies amid global growth worries, partly caused by mostly worse-than-expected Chinese economic data released Wednesday. The series of data out of China will be a focus today, revealing a further slowdown in the Chinese economy, according to IG, before the data were released. Also, a recent Covid-19 resurgence in China's Fujian province appears to be adding to further risks for the country's recovery, IG added. USD/JPY edged 0.1% lower to 109.59, AUD/JPY dropped 0.3% to 80.07 and SGD/JPY was down 0.1% at 81.56.

METALS 

Gold declined in early Asia trade, retreating from some overnight gains as USD weakened following the release of U.S. inflation data. Although the precious metal has been riding on the lower-than-expected U.S. CPI print and is back above the key $1,800 level, it remains to be seen if the dollar will regain strength, capping gold's gains, IG said. "This may also come as the timeline for Fed tapering may remain unchanged," it said. Spot gold was 0.1% lower at $1,802.94/oz.

OIL SUMMARY 

Oil rose in early Asian trade, amid eased concerns over the impact of Tropical Storm Nicholas on crude and natural-gas production in the Gulf of Mexico. Although storm-related power outages briefly shut U.S.'s largest pipeline, which sends oil from Houston to the northeast, its impact on offshore output was relatively limited, ANZ said. Meanwhile, market focus will likely be on the release in inventory from China's strategic oil reserves, ANZ said, noting that Beijing has confirmed that it will make the first sale of crude. Front-month WTI crude oil futures were 0.6% higher at $70.88/bbl, while Brent crude rose 0.5% to $73.99/bbl.

 
 
TOP HEADLINES 
China's Economic Activity Cooled Further in August 
China's New Home Price Growth Slowed in August 
China Property Market Cools as Beijing Tightens Reins 
Democrats Put Off Hard Decisions on $3.5 Trillion Spending Plan for Now 
Stocks Can't Shake Off Downward Pressure 
U.S. Casino Stocks Fall on Fears of Increased Macau Regulations 
Census Figures Show Americans' Incomes Fell in 2020 
Inflation Eased in August, Though Prices Stayed High 
Gary Gensler Focuses on Crypto Trading Platforms, Payment for Order Flow in Senate Hearing 
World's Oil Supply Pressured by Hurricane Ida, Other Outages 
U.S., EU Seek Global Pledge to Slash Methane Emissions by 2030 
Australian Consumers Turning Upbeat as Reopening Nears 
Senators Seek Answers From Facebook After WSJ Report on Instagram's Impact on Young Users 
Boeing CEO, Board Ask Judge to Clarify Ruling 
Amazon Union Drive Heads North to Canada 
Buffett-Backed Indian Fintech Giant Faces Challenges as IPO Nears 
BHP Says Memorandums of Understanding in Place With Importers for Jansen Output 
Comcast Stock Slides After Warning on Slowing Subscriber Growth 
New iPhone 13 Pro and Watch Series 7 Unveiled at Apple Event 
JPMorgan Chases the Online Investing Boom With Senior Hires 
App Annie Settles SEC Fraud Investigation Over Mobile-Data Product 
Chevron to Triple Low-Carbon Investment 
Big Truckers Say Vaccine Mandate Could Push Drivers Away 
 
 

(END) Dow Jones Newswires

September 14, 2021 23:15 ET (03:15 GMT)

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

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