Indian Morning Brief: Asian markets rally on Wall Street gains

GLOBAL MARKETS 
DJIA         34194.06    95.96  0.28% 
Nasdaq       11285.32   110.91  0.99% 
S&P 500       4027.26    23.68  0.59% 
FTSE 100      7465.24    12.40  0.17% 
Nikkei Stock 28450.62   334.88  1.19% 
Hang Seng    17626.64   102.83  0.59% 
Kospi         2432.14    14.13  0.58% 
SGX Nifty*   18480.00   103     0.56% 
*Dec contract 
 
USD/JPY 138.88-89  -0.51% 
Range   139.66   138.76 
EUR/USD 1.0430-33  +0.36% 
Range   1.0435   1.0393 
 
CBOT Wheat Dec $7.934 per bushel 
Spot Gold     $1,754.05/oz  0.3% 
Nymex Crude (NY) $77.48    -$3.47 
 
 
U.S. STOCKS 

US stocks moved higher Wednesday as minutes from the latest Federal Reserve meeting showed most officials were in favor of a slowdown in short-term interest rate hikes.

The S&P 500 gained 23.68 points, or 0.6%, to 4027.26. The Dow Jones Industrial Average added 95.96 points, or 0.3%, to 34194.06. The Nasdaq Composite jumped 110.91 points, or 1%, to 11285.32.

 
 
ASIAN STOCKS 

Japan’s Nikkei Stock Average rose 1.3% to 28477.45 in early trading, on a recovery rally with Wall Street after the benchmark index closed on Wednesday for a holiday. Local equities also got support from the latest FOMC meeting minutes, which showed most officials were in favor of a slower pace of rate hikes, analysts said. Top performers included NEXON Co. up 4.7%, Lasertec up 4.6%, and Z Holdings up 4.3%.

South Korea’s benchmark Kospi rose 0.7% to 2435.39 in early trading, led by internet, batteries and chemicals stocks. Sentiment was buoyed by Wall Street overnight gains after the latest Federal Reserve meeting minutes signaled a slower pace of rate hikes in the coming months. USD/KRW fell 1.1% to 1,337.50. Internet giants Naver and Kakao Corp. by 2.8% and 2.9%, respectively. Battery maker LG Energy Solutions gained 1.8%. Posco Chemical added 1.8%.

Hong Kong’s Hang Seng Index rose 1.0% to 17699.95 as investor sentiment strengthened. Sentiment likely improved after the FOMC minutes, as several US Fed officials showed support for easing the pace of interest rate hikes, SPI Asset Management said. Positive global risk sentiment is also likely to persist if November’s US inflation reading improves, he added.

Chinese shares rose in early trading, buoyed by property developers after Beijing signaled further support to the economy. The State Council said at its meeting this week that policy makers “will adopt monetary policy instruments such as [reserve requirement ratio] cuts where appropriate to keep liquidity at reasonable levels,” economists at Goldman Sachs said. The real estate sector was also boosted by news that some state-owned banks would provide financial support to the industry. 0.4% to 3108.18 , the Shenzhen Composite Index rose 0.5% and the ChiNext Price Index rose 0.4%

FOREX 

Asian currencies were mixed against the USD in the morning Asian session but could rally in the minutes of the latest FOMC meeting, analysts said. There were perceptions of a more accommodative FOMC, said Jeff Ng, a senior currency analyst at MUFG Bank, noting that Fed officials argued for the need to moderate the pace of rate hikes. Bank MUFG said it expects some tailwinds for most regional currencies in Thursday’s session in response to the minutes. USD/JPY fell 0.5% to 138.94, while USD/SGD changed slightly to 1.3764 and USD/THB rose 0.1% to 36.03.

METALS 

Gold edged higher in early Asian trade, but the gains could be short-lived, analysts said. There appear to be signs of buying fatigue from commodity trading advisors, TD Securities said. The recent rally in gold prices appears to have spurred long positions by discretionary fund managers, which have added vulnerability to downward price consolidation, he added. Spot gold rose 0.3% to $1,754.05 an ounce.

OIL SUMMARY 

Oil fell in the morning Asian session, weighed by EU talks on a cap on Russian oil prices. These discussions have put pressure on the oil market with a suggested level higher than many expected, ING strategists said, noting reports that the price ceiling could be set as high as $70 a barrel. This was above previous reports of about $60/bbl, and around the levels Russia was already receiving, the strategists said. Talks in the EU were to continue on Thursday, they added. First-month WTI crude oil futures fell 0.3% to $77.71/bbl; First-month Brent crude oil futures fell 0.3% to $85.13 a barrel.

 
 
TOP HEADLINES 
 
EU Fails to Reach Agreement on G-7's Price Cap for Russian Oil 
Fed Minutes Show Most Officials Favored Slowing Rate Rises Soon 
Bank of Korea Raises Rate But Eases Pace 
U.S. Poised to Grant Chevron License to Pump Oil in Venezuela 
New-Homes Sales Rose in October, Boosted by Higher-Priced Homes 
Jobless Claims Remain Near Prepandemic Lows 
Gucci's Creative Chief to Step Down 
FTX Hires Ex-Regulators to Investigate Firm's Collapse 
Deere's Profit, Sales Rise as Supply-Chain Delays Recede 
VW to Give Germany Workers $3,000 Bonus Amid Soaring Inflation 
Big Shareholder Signals Opposition to News Corp-Fox Combination 
Chinese Property Sector Shares Rise After Banks Extend Funding Support 
Republican Sen. Lisa Murkowski and Democratic Rep. Mary Peltola Win Re-Election in Alaska 
Justice Department Seeks to Speak to Mike Pence About Bid to Overturn Trump's 2020 Loss 
Hackers Temporarily Take Down European Parliament Website 
Georgia's Six-Week Abortion Ban Reinstated by State Supreme Court 
 

(END) Dow Jones Newswires

November 23, 2022 10:15 PM ET (03:15 GMT)

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

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