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Indian Morning Briefing: Asian Markets Mixed Following Weak China Data

DJIA              33912.44    151.39     0.45% 
Nasdaq            13128.05     80.87     0.62% 
S&P 500            4297.14     16.99     0.40% 
FTSE 100           7509.15      8.26     0.11% 
Nikkei Stock      28874.92      3.14     0.01% 
Hang Seng         20161.88    121.02     0.60% 
Kospi              2540.52     12.58     0.50% 
SGX Nifty*        17855.50      70.5     0.40% 
*August contract 
USD/JPY      133.35-36    +0.03% 
Range        133.50   132.97 
EUR/USD      1.0166-69    +0.08 
Range        1.0170   1.0148 
CBOT Wheat Sept $8.006 per bushel 
Spot Gold  $1,780.29/oz  0.1% 
Nymex Crude (NY) $88.93 -$3.16 

U.S. stocks extended their recent winning streak, while commodity prices fell on worries about slowing growth in China.

The S&P 500 added 0.4% after capping a fourth consecutive week of gains. The Dow Jones Industrial Average added 0.5% and the Nasdaq Composite advanced 0.6%.

Signs that inflation in the U.S. peaked earlier this summer have investors hoping the Federal Reserve will raise rates at a slower pace starting in September.

Some investors say stocks have fallen far enough this year to become attractive buying opportunities again.

"When the S&P 500 falls, there's a knot in your stomach, but when you're scared-that's the right time to be buying," said Peter Boockvar, chief investment adviser of Bleakley Financial Group, who is buying quality value stocks.


Japanese stocks were lower, dragged by falls in energy and shipping stocks, as uncertainty persisted over the economic outlook amid high inflation around the world. Investors were paying attention to the war in Ukraine, geopolitical tensions around Taiwan and their implications for global trade. The Nikkei Stock Average was down 0.1% at 28837.04.

South Korea's benchmark Kospi rose 0.3% to 2535.50 in early trade, led by airline, shipbuilding and battery stocks. Sentiment was supported by gains in U.S. stocks overnight amid investor hopes that inflation may have peaked earlier this summer and that the Federal Reserve may raise rates at a slower pace. Some growth stocks, including oil refiners, retreated on worries about China's slowing economic growth.

Hong Kong's Hang Seng Index edged 0.2% higher to 20078.76, tracking Wall Street gains overnight. With government bond yields falling in both the U.S. and China, "peak Fed" bets and accommodative Chinese policy may continue to push broad equities higher, Tina Teng, markets analyst at CMC Markets, said in an email.

Chinese shares were marginally higher in early trade. The benchmark Shanghai Composite Index gained 0.1% to 3280.56, the Shenzhen Composite was flat at 2218.13 and the ChiNext Price Index was 0.1% higher at 2721.27. "The latest set of data for China for July was generally softer than expected and there were few signs of a strong rebound or the recovery gaining traction," Commerzbank analysts said in a note. Consumer sentiment was likely to remain fragile given uncertainties over future outbreaks and lockdowns, they added.


Asian currencies were mixed against the USD in the Asian morning session, but could depreciate on global growth worries spurred by weaker-than-expected Chinese economic data released Monday. Sentiment may continue to revolve around China's disappointing economic data, which paint a more muted growth picture, said Yeap Jun Rong, market strategist at IG, in an email. Global trade activities are poised to moderate further for the rest of the year, which comes as another upcoming headwind, the strategist added. USD/KRW fell 0.2% to 1,310.14, while AUD/USD edged 0.1% lower to 0.7018, and USD/PHP rose 0.3% to 56.04, according to FactSet.


Gold prices were little changed in early Asian trade, after settling overnight at their lowest price in more than a week amid a stronger U.S. dollar. Sentiment was also partly weighed by China's weak economic data, and the surprise interest-rate cuts from the country's central bank. "Gold markets appear to have bottomed but a hawkish Fed is probably still a cap on near-term topside," Citi analysts said in a note. Spot gold rose 0.1% to $1,780.29/oz.


Oil prices were lower in early Asian trade after China's weak economic data highlighted the possibility of weaker demand. The data "doesn't bode well for oil demand especially when the country remains so committed to zero-Covid," Oanda's senior market analyst Craig Erlam said in a note. "And with cases continuing to rise, the downward pressure on oil prices could intensify," he said. Front-month WTI crude-oil futures fell 1.1% to $88.39/bbl and Brent declined 1.3% to $93.90/bbl

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(END) Dow Jones Newswires

August 15, 2022 23:15 ET (03:15 GMT)

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