Indian Morning Briefing: Asian Markets Rise; China Manufacturing PMI Beat Forecasts

GLOBAL MARKETS 
DJIA          32859.03    141.43     0.43% 
Nasdaq        12013.47     87.24     0.73% 
S&P 500        4050.83     23.02     0.57% 
FTSE 100       7620.43     56.16     0.74% 
Nikkei Stock  28031.96    249.03     0.90% 
Hang Seng     20643.27    334.14     1.65% 
Kospi          2476.61     23.45     0.96% 
SGX Nifty*    17253.00     -6.5     -0.04% 
*Apr contract 
 
USD/JPY  132.91-92  +0.14% 
Range    133.51   132.59 
EUR/USD  1.0907-10  +0.04% 
Range    1.0928   1.0902 
 
CBOT Wheat May   $6.922 per bushel 
Spot Gold  $1,978.50   -0.1% 
Nymex Crude (NY)  $74.23      $1.26 
 
 
US STOCKS 

U.S. stocks extended their gains into a second day, bolstered by waning concerns about global banks and growing hopes that the Federal Reserve could soon pause its interest-rate increases.

The tech-heavy Nasdaq Composite rose 0.7%. The broad S&P 500 Index added 0.6%, while the Dow Jones Industrial Average gained 0.4%. Financial stocks lagged behind.

Federal Reserve Bank of Boston President Susan Collins said she expected the U.S. central bank to continue tightening monetary policy a bit more, before holding interest rates through the end of the year.

"While the banking system remains strong and resilient, recent developments will likely lead banks to take a somewhat more conservative outlook and tighten lending standards, thus contributing to slowing the economy and reducing inflationary pressures," Ms. Collins said.

"Market fears of broader contagion are limited," said Matt Orton, chief investment strategist at Raymond James Investment Management. "The market is starting to coalesce around the fact that this was not a systemic risk event. It was very idiosyncratic, and specific to issues at certain banks."

 
 
ASIAN STOCKS 

Japanese stocks rose, led by gains in electronics, auto and steel stocks, as the yen weakened and concerns eased about the global banking sector for now. USD/JPY briefly rose to a two-week high of 133.35, compared with 132.46 as of Thursday's Tokyo stock market close. Investors are focusing on economic data for policy implications. Japan's industrial output in February rose 4.5% on month, exceeding a 2.7% gain expected, while retail sales in February increased 6.6% on year. The Nikkei Stock Average was up 1.1% at 28088.66.

South Korea's benchmark Kospi was 0.3% higher at 2461.03 in early trade as electronics and auto stocks advanced. Easing concerns about the global banking turmoil and gains in U.S. tech stocks supported sentiment, Kiwoom Securities said in a note. Retail investors were net buyers. USD/KRW was 0.2% lower at 1,296.95.

Hong Kong's benchmark Hang Seng Index opened 1.35% higher at 20583.88, boosted by tech companies after JD.com said it plans to spin off two of its subsidiaries via Hong Kong listings. The Hang Sang Tech Index was up 2.0%. China's official PMI for March fell but remained in expansionary territory, indicating a continued economic rebound after the Covid reopening, which may boost sentiment.

Chinese shares were higher in early trade, in tandem with broad gains for other Asian equity markets amid expectations that the U.S. Fed may soon pause its interest-rate increases. The benchmark Shanghai Composite Index gained 0.1% to 3264.80, the Shenzhen Composite Index rose 0.1% to 2110.72 and the ChiNext Price Index was 0.4% higher at 2392.56.

FOREX 

Most Asian currencies strengthened against the U.S. dollar in the morning session amid a risk-on mood spurred by another day of Wall Street gains. Risk appetite has continued to recover, and investors have taken a round of hawkish comments from Fed officials in their stride, Commerzbank analysts said in a research report. For today, market participants will likely focus on the February PCE deflator, the Fed's preferred inflation gauge, the analysts added. USD/KRW fell 0.4% to 1,291.33, USD/SGD edged 0.1% lower to 1.3266 and AUD/USD rose 0.2% to 0.6725.

METALS 

Gold was a tad lower in early Asian trade. The price of the metal could remain below the $2,000/oz level as investors consider the path of Federal Reserve rate increases, said David Cottle, an analyst at DailyFX. Data releases such the University of Michigan's monthly snapshot of U.S. consumer sentiment will have the potential to bear on interest-rate views, he added. Spot gold was down 0.1% at $1,978.50.

OIL SUMMARY 

Crude oil prices were mixed in early trade. The price of the commodity is likely to take cues from broader market sentiment, as ongoing supply-side issues remain in focus, said ANZ analysts in a note. Oil producers including Norway's DNO ASA, Gulf Keystone Petroleum and HKN Energy have begun shutting wells in the Kurdistan region in Iraq after they lost access to a vital pipeline, ANZ added. The front-month WTI futures contract was up 0.1% at $74.45/bbl while the front-month Brent crude contract was flat at $79.29/bbl.

 
 
TOP HEADLINES 
China's Factory Activity Expanded in March But at a Slower Pace 
Stocks Rise, Notching Second Straight Gain 
White House Calls for Tougher Midsize Bank Rules 
U.K. Joins Trans-Pacific Partnership as It Seeks to Diversify International Commerce 
Glynn's Take: RBA Set to Announce a Rates Pause, But Keep Hawkish Bias 
Boston Fed's Susan Collins Sees Modest Further Tightening by Central Bank 
Low Jobless Claims Show Labor Market Shrugs Off Economy's Clouds 
New Listing Rules Give Chinese Companies Clarity, Opportunity 
Iraqi Oil-Pipeline Closure Supports Global Crude Prices 
U.S. GDP in fourth quarter trimmed again to 2.6% on weaker consumer spending 
Janet Yellen Says Bank Rules Might Have Become Too Loose 
Grand Jury Votes to Indict Donald Trump 
Reporting on Russia Became More Treacherous After Ukraine Invasion 
U.K. Plans to Invest $495 Million in Economic Crime Crackdown 
Ford Raises Price Again on Electric F-150 Lightning Truck 
Bed Bath & Beyond Ends Hudson Bay Deal, Turns to Market for $300 Million to Avoid Bankruptcy 
JD.com's Property and Industrial Units Seek About $1 Billion Each in Hong Kong IPOs 
Virgin Orbit Holdings to Cut Workforce by 85% 
Fed, Treasury Fine Wells Fargo for Sanctions Violations 
Jack Ma Engineered Alibaba's Breakup From Overseas 
FTX Founder Sam Bankman-Fried Pleads Not Guilty to Latest Federal Charges 
Wall Street Bonuses Fall by Most Since 2008 
Huawei's Meng Wanzhou Steps Closer to U.S.-China Tech-War Front Line as Chairwoman 
Merdeka Battery Materials on Track to Price IPO at Top of Range 
 
 

(END) Dow Jones Newswires

March 30, 2023 23:15 ET (03:15 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.