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Indian Morning Briefing: Asian Markets Mostly Lower; China's Economic Growth Slows Sharply

GLOBAL MARKETS 
DJIA         35294.76   382.20   1.09% 
Nasdaq       14897.34    73.91   0.50% 
S&P 500       4471.37    33.11   0.75% 
FTSE 100      7234.03    26.32   0.37% 
Nikkei Stock 28970.68   -97.95  -0.34% 
Hang Seng    25206.34  -124.62  -0.49% 
Kospi         3009.53    -5.53  -0.18% 
SGX Nifty*   18431.00    27.00   0.15% 
*Oct contract 
 
USD/JPY  114.12-13   -0.12% 
Range    114.37   114.03 
EUR/USD  1.1592-95   -0.04% 
Range    1.1607   1.1583 
 
CBOT Wheat Dec $7.340 per bushel 
Spot Gold   $1,771.22/oz   0.3% 
Nymex Crude (NY) $82.23   $0.92 
 
 
U.S. STOCKS 

U.S. stocks rose Friday, notching their biggest weekly gains in months following a strong streak of earnings reports.

Stocks began the week with losses, but turned higher after companies ranging from banks to insurers delivered robust results for the latest quarter.

Economic data also helped reassure investors about the growth outlook. Data Friday showed retail sales unexpectedly rose in September, despite economists' worries about the Delta variant of Covid-19 and the end of enhanced unemployment benefits.

The S&P 500 added 33.11 points, or 0.7%, to 4471.37 and jumped 1.8% for the week, posting its best weekly performance since July. The Dow Jones Industrial Average gained 382.20 points, or 1.1%, to 35294.76 and advanced 1.6% for the week, delivering its biggest weekly gain since June.

The technology-focused Nasdaq Composite ticked up 73.91 points, or 0.5%, to 14897.34 and climbed 2.2% for the week.

 
 
ASIAN STOCKS 

Japan's Nikkei Stock Average was down 0.1% at 29033.80 as falls in share prices of electronics and pharmaceutical companies helped offset gains in auto makers and airlines. Any policy developments were being closely watched ahead of Japan's lower-house election later this month.

South Korea's Kospi was 0.8% lower at 2992.05 in early trade after opening higher, dragged by transport, steel and tech stocks. Shipbuilder Hyundai Heavy Industries slipped 3.3% as the post-IPO lockup period for some of its shares ended. Index heavyweight Samsung Electronics was 1.1% lower.

Hong Kong's Hang Seng Index rose 0.4% to 25425.32 as investor sentiment continued to pick up, KGI Securities said. Sentiment likely improved after PBOC Governor Yi Gang said that the Chinese government could contain economic risks caused by China Evergrande's debt issues and thanks to the strong performance in U.S. markets last week, the brokerage added. Technology stocks were leading gainers. Oil majors also rose.

Chinese shares were lower in early trade, led by steel mills and baijiu makers, as the ongoing energy shortage in the country affects industrial activity across multiple sectors. Steel mills were lower, with Inner Mongolia Baotou Steel Union down 0.3% and Baoshan Iron & Steel slipping 0.5%. Baijiu makers Kweichow Moutai and Wuliangye Yibin were 4.8% and 6.9% lower, respectively. The Shanghai Composite Index fell 0.7% to 3546.94, the Shenzhen Composite Index slipped 0.9% to 2379.97 and the ChiNext Composite Index dropped 1.0% to 3244.63.

FOREX 

Asian currencies were mixed against USD in the morning Asian session, but may weaken amid prospects for rate increases from the Fed. USD has further upside, CBA said, noting rate-increase expectations have risen since the FOMC's September meeting. Underlying inflation pressures were also building, CBA said, noting the University of Michigan survey for October showed consumer inflation expectations were solid. USD/KRW edged 0.1% higher to 1,183.74, USD/SGD was steady at 1.3481 and USD/JPY was 0.1% lower at 114.07.

METALS 

Gold rose in the early Asian session amid an outlook for a prolonged period of higher inflation in the U.S. This outlook was being supported by the ongoing energy crisis although market pricing for the Fed's rate increases is preventing gold prices from surging just yet, TD Securities said, noting that the precious metal is an ideal hedge against rising stagflationary winds. Spot gold was recently up 0.3% at $1,771.22/oz.

OIL SUMMARY 

Oil climbed in the morning Asian trade on prospects for robust global demand. The International Energy Agency warned last week that high prices of natural gas would boost demand for crude oil. Easing Covid-19 restrictions around the world were also likely to aid the recovery in fuel consumption, ANZ said, noting news that the U.S. will open its borders to fully-vaccinated foreign travellers starting next month. Front-month WTI crude oil futures were 1.2% higher at $83.25/bbl. Front-month Brent crude oil futures were 0.9% higher at $85.60/bbl.

 
 
TOP HEADLINES 
 
China Third-Quarter Economic Growth Slows Sharply to 4.9% 
China's Factory Production Hindered by Power Crunch in September 
China's Property Market Cools Amid Beijing Crackdown 
Supply-Chain Bottlenecks, Elevated Inflation to Last Well Into 2022, Survey Finds 
India Embraces Stock Investing as Local Market Surges 
Goldman Sachs Cleared to Own All of China Securities Unit 
Saks E-Commerce Unit Begins IPO Preparations 
Facebook Says AI Will Clean Up the Platform. Its Own Engineers Have Doubts. 
Alibaba Faces New Threat as Shopping Habits Change 
Hollywood Strike Averted as Workers, Studios Reach a Deal 
MBK Partners to buy Haichang Ocean Park Assets for $1.01 Billion 
'Crazy' Bets on $200 Oil Invade the Options Market 
U.K. House Prices Hit Record High in October 
Democrats Face Benefits and Climate Consensus Deadline 
Democrats Bet on Raising Taxes on the Wealthy, Big Businesses 
California Scrambles to Find Electricity to Offset Plant Closures 
New Zealand Consumer Prices Rise at Fastest Pace in Over a Decade 
Singapore's Non-Oil Domestic Exports Rose 12.3% in September 
 
 

(END) Dow Jones Newswires

October 17, 2021 23:15 ET (03:15 GMT)

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