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Indian Morning Briefing: Asian Markets Track Wall Street Higher

DJIA         33248.28   435.05    1.33% 
Nasdaq       12316.90   322.44    2.69% 
S&P 500       4176.82    75.59    1.84% 
FTSE 100      7532.95   -74.71   -0.98% 
Nikkei Stock 27709.37   295.49    1.08% 
Hang Seng   CLOSED 
Kospi         2668.72     9.73    0.37% 
SGX Nifty*   16809.50   199.5     1.20% 
*June contract 
USD/JPY  129.76-77    -0.09% 
Range    130.04   129.70 
EUR/USD  1.0758-61    +0.12% 
Range    1.0766   1.0726 
CBOT Wheat July $10.582 per bushel 
Spot Gold    $1,873.38/oz   0.2% 
Nymex Crude (NY) $117.24   $1.98 

Stocks rose, with all three major U.S. indexes finishing Thursday on track to end the week in positive territory.

U.S. indexes wavered in the morning before picking up steam. The benchmark S&P 500 gained 75.59 points, or 1.8%, to close at 4176.82, while the tech-focused Nasdaq Composite added 322.44 points, or 2.7%, to 12316.90. The Dow Jones Industrial Average rose 435.05 points, or 1.3%, to 33248.28. Major stock indexes declined Wednesday to start the month.


Japanese stocks were higher, led by gains in retail and tech stocks, thanks to hopes for a recovery in retail earnings and following a sharp rise in U.S. tech stocks overnight. Fast Retailing gains 4.3% after its Uniqlo same-store sales in Japan rose 17.5% on year in May. Clothing retail peer Adastria is 5.5% higher after May same-store sales rose 32% on year. Investors are focusing on movements of the yen and bond yields ahead of U.S. jobs data due later in the day. The Nikkei Stock Average is 0.9% higher at 27670.21.

South Korea's Kospi rose 0.6% to 2674.44 in early trade, led by construction-equipment and travel stocks. Wall Street's rebound overnight and solid Korean trade data for May helped boost investor sentiment, Kiwoom Securities said in a note. Renewed risk appetite sent USD/KRW 0.8% lower to 1,242.50. Growing pressure on the Bank of Korea to raise rates further after the country's inflation hit a near 14-year high in May was also helping the dollar weaken against the won. Excavator maker Hyundai Construction Equipment rose 5.7%. Budget airline Jin Air advanced 4.6%. Index heavyweight Samsung Electronics added 0.5%.

Markets in Hong Kong and Mainland China are closed Friday for a holiday.


Asian currencies were mixed against the U.S. dollar in the Asian morning session ahead of U.S. May nonfarm payrolls data due later in the day. The data will be in the spotlight, said Tina Teng, markets analyst at CMC Markets. It could be positive news for broad sentiment should the data show a slowdown in hiring, making a "Fed pause" more possible in September, the analyst added. USD/KRW edged 0.1% higher to 1,242.20 while USD/CNH fell 0.5% to 6.6260 and AUD/USD was down 0.1% at 0.7256.


Gold was higher in early Asian trading amid a flight to haven assets as a U.S. employment report signaled a softening economy, ANZ analysts said in a note. U.S. private sector payrolls rose by 128,000 in May. This was raising the prospect of a less aggressive rate-rise cycle from the Federal Reserve, they said. That said, Fed Vice Chair Lael Brainard has commented that expectations for 50 basis point increases this month and next were reasonable and saw no case for pausing the bank's tightening campaign afterwards, the ANZ analysts said. Spot gold was 0.2% higher at $1,873.38/oz.


Oil prices turned lower in the Asian session as OPEC+ agreed to increase supply, although losses could be limited by expectations that any rise in production may not be significant, ING commodities strategist Warren Patterson said in a note. Saudi Arabia, the U.A.E. and Iraq have meaningful amounts of spare capacity, "and so we should at least see these three nations hitting their agreed output levels over the summer," he said. Focus was now turning to the U.S. President Biden's visit to Saudi Arabia, with the likely aim of getting the country to produce more oil, Patterson said. Front-month Brent was recently 0.1% lower at $117.49/bbl; WTI declined 0.2% to $116.62/bbl.

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EQT Nears $3 Billion Deal for Medical-Freight Provider Envirotainer 
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Tiger Global's Hedge Fund Lost 52% for the Year Through May 
Fast Retailing Shares Rise Sharply After Japan Uniqlo Sales Surged in May 
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China Nears Launch of Advanced Aircraft Carrier, Satellite Images Show 

(END) Dow Jones Newswires

June 02, 2022 23:15 ET (03:15 GMT)

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