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Indian Morning Briefing: Asian Markets Mixed at Start of Week

GLOBAL MARKETS 
DJIA           36327.95    203.72     0.56% 
Nasdaq         15971.59     31.28     0.20% 
S&P 500         4697.53     17.47     0.37% 
FTSE 100        7303.96     24.05     0.33% 
Nikkei Stock   29551.25    -60.32    -0.20% 
Hang Seng      24760.96   -109.55    -0.44% 
Kospi           2935.95    -33.32    -1.12% 
SGX Nifty*     17993.50     53.0      0.30% 
*Nov contract 
 
USD/JPY    113.61-62    +0.18% 
Range      113.64   113.35 
EUR/USD    1.1558-61    -0.07% 
Range      1.1572   1.1552 
 
CBOT Wheat Dec   $7.664 per bushel 
Spot Gold   $1,818.10/oz    0.1% 
Nymex Crude (NY) $81.52      $2.71 
 
 
US STOCKS 

U.S. stocks rose to records on Friday after Labor Department data showed job growth rebounded in October following a summer slowdown.

The S&P 500 ticked up 0.4%, while the Dow Jones Industrial Average was up 0.6%. The tech-heavy Nasdaq Composite Index rose 0.2%. All three indices posted weekly gains and notched fresh closing records. The jobs report showed the labor market is solid enough for the Fed to justify tapering its monthly asset purchases, said Jay Pestrichelli, CEO of investment firm ZEGA Financial.

 
 
ASIAN STOCKS 

Japanese stocks were higher in early trade, led by gains in airline and railway stocks amid hopes that Japan will reopen its economy further. Earnings are in focus, with SoftBank Group scheduled to disclose results later in the day. The Nikkei Stock Average was up 0.2% at 29661.46.

South Korea's benchmark Kospi fell 0.9% to 2943.08, dragged by fintech, gaming and biotech stocks. Digital-only bank KakaoBank and online video game developer Krafton fall as institutional investors are allowed to sell shares and book profit after their post-IPO lockup periods end. Vaccine maker SK Bioscience and antiviral treatment developer Celltrion Inc. slide, as U.S. drug firms Pfizer and Merck have recently reported that their Covid-19 pills are effective in fighting the coronavirus. Meanwhile, Airlines advanced on the easing of Covid-19 travel restrictions.

Hong Kong shares fell, continuing their recent downtrend, with losses led by healthcare and tech sectors. Among tech stocks, Alibaba Group and Tencent Holdings fall, dragging the Hang Seng TECH Index 1.4% lower. The Hang Seng Index dropped 0.6% to 24727.55.

Chinese stocks were mixed, with aluminum smelters and steelmakers gaining as the country's energy shortage eased. China's National Development and Reform Commission on Saturday said coal production continued to exceed consumption for power generation, which is likely to reduce the risk of output disruptions for the material producers. The Shanghai Composite Index was flat at 3490.97, the Shenzhen Composite Index fell 0.1% to 2403.11 and the ChiNext Price Index was 0.3% higher at 3361.80.

FOREX 

Most Asian currencies weakened against the U.S. dollar in the Asian morning session as Treasury yields rose, underpinning the appeal of dollar-denominated fixed-income assets. Decent October nonfarm payrolls data, the Fed's decision to proceed with QE tapering and the U.S. infrastructure deal support the dollar, Westpac said. Short-term German bund-Treasury yield spreads continue to move in the dollar's favor and a likely strong U.S. October CPI report due later this week could keep this trend intact, Westpac added. USD/KRW rose 0.3% to 1,185.39 and USD/JPY gained 0.2% to 113.58, while USD/THB fell 0.3% to 33.14.

METALS 

Gold was higher in early Asia trade as rising global bond yields support demand for the precious metal, Oanda said. "Global bond yields have been tumbling quickly and that has revitalized the trade in gold," it said. "Both Fed and BoE rate-hike bets are getting pushed back and that has been great news for bullion." Oanda said strength in the U.S. labor market and in equities doesn't seem to be significantly dampening demand for the safe-haven asset. Spot gold was 0.1% higher at $1,818.10 an ounce.

OIL SUMMARY 

Oil was higher in early Asian trading on signs of strong demand as Saudi Arabia's state oil producer Aramco raised December official selling prices to its customers in all regions, ANZ said. Its flagship December Arab Light crude is priced at a $2.70/bbl premium against the Oman-Dubai benchmark, up by $1.40/bbl from November. The bank said the higher price signals strong demand. The recent OPEC decision to stick with its scheduled 400,000 barrel-a-day production hike, despite calls to raise it further, also supports prices. Both front-month WTI and Brent were recently 1.2% higher, at $82.23/bbl and $83.71, respectively.

 
 
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(END) Dow Jones Newswires

November 07, 2021 22:15 ET (03:15 GMT)

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