Skip to Content
Global News Select

Indian Morning Briefing: Asian Markets Mostly Lower Despite Overnight Rally on Wall Street

DJIA          30530.25    641.47     2.15% 
Nasdaq        11069.30    270.95     2.51% 
S&P 500        3764.79     89.95     2.45% 
FTSE 100       7152.05     30.24     0.42% 
Nikkei Stock  26260.58     14.27     0.05% 
Hang Seng     21424.26   -135.33    -0.63% 
Kospi          2372.59    -36.34    -1.51% 
SGX Nifty*    15592.50    -30       -0.19% 
*Jun contract 
USD/JPY   136.19-20   -0.31% 
Range     136.72   136.09 
EUR/USD   1.0510-13   -0.21% 
Range     1.0545   1.0503 
CBOT Wheat July   $9.752 per bushel 
Spot Gold   $1,829.05/oz   -0.2% 
Nymex Crude (NY)  $110.65      $1.09 

U.S. stocks rallied off their worst week since March 2020, offering investors a reprieve from a recent stretch of whipsaw trading that had sent stocks and cryptocurrencies falling.

The S&P 500 gained 2.5% while the Dow Jones Industrial Average added 2.2%. The Nasdaq Composite Index jumped 2.5%. Investors' appetite for riskier assets followed a tumultuous week in the markets, sparked by the Federal Reserve's approval of a 0.75-percentage-point interest-rate increase, the largest since 1994.

Meanwhile, investors are awaiting further commentary from Federal Reserve Chairman Jerome Powell when he testifies before Congress on both Wednesday and Thursday.


Japan's Nikkei Stock Average was 0.6% higher at 26395.12 in morning trade, supported by gains in U.S. stocks overnight on stronger risk-on sentiment. JPY weakened against USD to a 1998 low, and was last at 136.32 versus 135.13 as of Tuesday's Tokyo stock-market close.

South Korea's benchmark Kospi fell 0.3% to 2401.10 in mixed early trade after opening higher. Wall Street's gains overnight helped buoy investor sentiment but persistent fears about inflation and slower growth still weigh.

Hong Kong stocks were slightly lower, showing signs of weakness after a two-day winning streak earlier this week. The benchmark Hang Seng Index shed 0.4% to 21479.69. KGI Securities analysts said the Hong Kong market is likely to remain under pressure in the near term, given a strong U.S. dollar, rising U.S. interest rates and worries over a global economic slowdown. While some support can come from Beijing's stimulus measures, KGI sees limited upside for the HSI for now.

Chinese shares were mixed after opening higher, tracking other Asian equities as investors weighed a positive lead from the U.S. overnight against worries about inflation. The Shanghai Composite Index declined 0.1% to 3305.01, the Shenzhen Composite Index was flat at 2147.59 and the ChiNext Price Index gained 0.8% to 2713.69. "The overnight rebound in Wall Street may provide a positive backdrop for Asian equities but gains may seem capped by some wait-and-see sentiments, heading into Fed Chair Jerome Powell's comments today," IG market analyst Yeap Jun Rong said in a note.


The dollar weakened against the euro and strengthened against the yen as the stock market rallied overnight and investors took on some risk. Corpay Chief Market Strategist Karl Schamotta noted that copper and iron ore prices, often considered bellwethers for global growth, fell sharply yesterday. They've tumbled over the last month as the Chinese property sector continues to weaken, he said. "Against this backdrop, demand for safe haven assets--like the dollar--looks likely to remain relatively strong."


Gold prices fell after U.S. stocks rallied overnight in a snapback from last week's selloff. However, the precious metal may be supported by safe-haven demand in the near term, as lingering economic concerns could still weigh on equity markets. "Despite the noise of the past week, [gold] remains anchored in the middle of its one-month range," Oanda senior market analyst Jeffrey Halley said in a note. Halley puts resistance for gold at $1,860 and support at $1,805. Spot gold was recently 0.2% lower at $1,829.05/oz.


Oil prices declined after rising overnight due to worries over tight global supplies. "Investors become increasingly jittery that the Fed will feel compelled to respond forcefully to high headline inflation and consumer inflation expectations if energy prices rise further," SPI Asset Management managing partner Stephen Innes said in an email. However, near-term sentiment may be supported by the prospect of the temporary suspension of the U.S. federal gasoline tax, "which would likely put a smile on U.S. travellers' faces, hence increasing demand during the summer driving season," he added. Front-month WTI crude oil futures were 1.4% lower at $108.05/bbl, while Brent fell 1.2% to $113.27/bbl.

Stock Market Jumps After S&P 500's Worst Week in Two Years 
Biden Expected to Call for Temporary Federal Gasoline Tax Suspension 
Bitcoin's Price Bounces Above $21,000, Reversing Weekend Slide 
U.K. Rail Workers Strike as Inflation Soars 
U.S. Existing-Home Sale Prices Hit Record of $407,600 in May 
Yellen Says Fed Can Combat Inflation Without Unemployment Increasing Significantly 
Firms Warn of China Shipment Delays as U.S. Bans Xinjiang Imports 
Biden Administration Targets Removal of Most Nicotine From Cigarettes 
Inflation Collides With Growth Fears to Trigger Big Swings in the Bond Market 
Senate Negotiators Release Text of Gun Bill 
New York vs. New Jersey Port Fight Heads to U.S. Supreme Court 
Canada to Compel YouTube, TikTok and Streamers to Boost Domestic Content 
TPG Capital Pivots to Take Convey Health Private 
Kellogg's CFO Faces Challenge of Splitting Balance Sheet Three Ways 
Lawyers Make Final Arguments in Fraud Case Against Former Theranos President 
Barack and Michelle Obama Strike Deal With Amazon's Audible 
Facebook Parent Meta Agrees to End Alleged Discriminatory Practices in Housing Ads 
Amazon Names Doug Herrington as New Boss of Worldwide Stores 
Companies Skewer SEC's Climate-Disclosures Plan in Comment Letters 

(END) Dow Jones Newswires

June 21, 2022 23:16 ET (03:16 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.