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Indian Morning Briefing: Asian Markets Mixed at Start of the Week

GLOBAL MARKETS 
DJIA         28725.51  -500.10  -1.71% 
Nasdaq       10575.62  -161.89  -1.51% 
S&P 500       3585.62   -54.85  -1.51% 
FTSE 100      6893.81    12.22   0.18% 
Nikkei Stock 26125.86   188.65   0.73% 
Hang Seng    17143.89   -78.94  -0.46% 
Kospi       Closed 
SGX Nifty*  16938.50   -149.5   -0.87% 
*Oct contract 
 
USD/JPY 144.75-76  +0.02% 
Range   144.88   144.52 
EUR/USD 0.9818-21  +0.18% 
Range   0.9829   0.9781 
 
CBOT Wheat Dec $9.214 per bushel 
Spot Gold    $1,666.28/oz  0.3% 
Nymex Crude (NY) $79.67  -$1.56 
 
 
U.S. STOCKS 

U.S. stocks fell Friday, closing out a losing week, month and quarter as investors wrestled with more signs of persistently high inflation.

Major indexes locked in their quarterly losses with another down day. The S&P 500 fell 54.85 points, or 1.5%, to 3585.62. The Dow Jones Industrial Average dropped 500.10 points, or 1.7%, to 28725.51. The Nasdaq Composite declined 161.89 points, or 1.5%, to 10575.62.

All three indexes ended at their lowest closing levels since 2020. The Dow Jones Industrial Average is down 21% in 2022, the S&P 500 is off 25% and the tech-heavy Nasdaq Composite has slumped 32%.

Major indexes have sustained deep losses this year as the Federal Reserve raises interest rates in an attempt to tame rising prices. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite on Friday all recorded their worst first nine months of a calendar year since 2002, according to Dow Jones Market Data.

 
 
ASIAN STOCKS 

Japanese stocks were lower, dragged by falls in retail, game and tech stocks, as uncertainty persists over the global economic outlook. Investors were focusing on economic indicators and developments over the war in Ukraine. The Bank of Japan's quarterly tankan corporate survey showed sentiment among Japan's large manufacturers deteriorated in the three months to September. The Nikkei Stock Average was down 1.1% at 25657.94.

Markets in mainland China and South Korea are closed Monday for a holiday.

Hong Kong stocks were slightly higher in morning trade, after opening lower as China's property sector continued to rebound from a selloff last week. The benchmark Hang Seng Index was up 0.1% at 17231.37. Real-estate companies began recovering Friday after Beijing officials gave local governments more leeway to lower mortgage rates for some home buyers. China Industrial Securities analysts said the market had likely hit bottom, but recovery visibility remained limited given a host of negative factors including global equities weakness and China's slowing economy.

FOREX 

Asian currencies were mixed against USD amid thin trading in Asia's morning session owing to holidays in China, South Korea and some parts of Australia. However, USD was likely to be supported, as financial-market turmoil has yet to abate even after the BOE stepped in with an emergency bond-purchase program, which may put downward pressure on major currencies such as GBP, said MUFG Bank analysts in a research report. Asia ex-Japan currencies could also be under pressure in the wake of Friday's rebound in the USD Index and a recovery in oil prices, MUFG Bank added. USD/MYR edged 0.2% higher to 4.6470, while USD/SGD was little changed at 1.4336.

MYR was weaker against SGD and USD in the morning Asian session on political uncertainty in Malaysia. The "drumbeat" of a general election in Malaysia is growing louder, with increased speculation of a snap poll before end-2022, specifically after tabling of the country's budget in parliament this month, said Alvin T. Tan, head of Asia FX Strategy at RBC Capital Markets, in an email. This would likely keep uncertainty surrounding MYR high in coming weeks, with focus on the 3.25 level for SGD/MYR as a potential upside breakout trade, Tan added. SGD/MYR was up 0.3% to 3.2428 and USD/MYR gained 0.3% to 4.6495, according to FactSet.

METALS 

Gold rose in the morning Asian session amid prospects for lower Treasury yields and an improving China outlook. Things are beginning to look better for the precious metal, said Edward Moya, senior market analyst at Oanda, in an email. Wall Street seems confident that the Fed's tightening might be close to a peak, while China has taken moves to support the housing market and Beijing might be closer to making a gradual adjustment to its zero-Covid policy, Moya added. Spot gold was up 0.3% at $1,666.28/oz.

OIL SUMMARY 

Oil climbed in the early Asian session on prospects that OPEC+ may reduce production. The group is poised to consider Wednesday a cut of more than 1 million barrels a day to help support declining oil prices, according to delegates in the group. Other options being considered include a smaller reduction of 500,000 barrels a day or as much as 1.5 million barrels a day, the delegates said. Front-month WTI crude oil futures were 2.6% higher at $81.55/bbl; front-month Brent crude oil futures were up 2.6% at $87.37/bbl.

 
 
TOP HEADLINES 
 
OPEC+ to Weigh Production Cut to Bolster Oil Prices 
Credit Suisse Seeks to Calm Market Jitters 
Tesla Deliveries Bounce Back to Record, Though Dented by Distribution Delays 
Sinopec to Delist ADSs From London Stock Exchange 
Japan Large Manufacturers' Sentiment Weakens 
Myovant Sciences Rejects Sumitomo Pharma's Offer 
L3Harris Near Deal to Buy Part of Viasat's Government-Systems Unit, Sources Say 
Rio Tinto Calls for ERA Chairman to Resign 
Optus Hires Deloitte to Review Cyberattack 
Russia's Gazprom Suspends Gas Flow to Italy 
Nike's Inventory Woes Stretch to China as Covid Recovery Remains a Challenge 
Chinese Tech Billionaire Richard Liu Settles Sexual-Assault Case in Minnesota 
Cargo Shipowners Cancel Sailings as World Trade Flips to Empty Containers From Backlogs 
Iran Protesters Circumvent Internet Disruptions 
Former Leftist President Wins First Round in Brazilian Presidential Election 
As Russian Troops Flee Lyman, Ukrainians Rejoice-and Help Themselves to Russian Supplies 
Ian's Hardest-Hit Areas Rev Up Recovery Efforts 
 

(END) Dow Jones Newswires

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

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