Indian Morning Briefing: Asian Markets Mostly Lower


GLOBAL MARKETS 
DJIA         30775.43  -253.88  -0.82% 
Nasdaq       11028.74  -149.16  -1.33% 
S&P 500       3785.38   -33.45  -0.88% 
FTSE 100      7169.28  -143.04  -1.96% 
Nikkei Stock 26183.96  -209.08  -0.79% 
Hang Seng  CLOSED 
Kospi         2324.15    -8.49  -0.36% 
SGX Nifty*   15741.00    18.5    0.12% 
*July contract 
 
USD/JPY 135.29-30  -0.29 
Range   135.98   135.26 
EUR/USD 1.0466-69  -0.16 
Range   1.0489   1.0462 
 
CBOT Wheat July $8.686 per bushel 
Spot Gold      $1,806.38/oz  -0.1% 
Nymex Crude (NY) $105.69    -$4.09 
 
 
U.S. STOCKS 

US stocks retreated on the final day of a brutal quarter for markets, weighed down by losses among shares of everything from banks to oil producers.

Thursday’s trading was volatile. Major indexes fell sharply in morning trading, pared losses in the following hours, and then fell again late in the session.

The S&P 500 finished down 33.45 points, or 0.9%, to 3785.38, bringing its losses for the first half of the year to 21%. The Dow Jones Industrial Average fell 253.88 points, or 0.8%, to 30775.43, while the Nasdaq Composite retreated 149.16 points, or 1.3%, to 11028.74.

 
 
ASIAN STOCKS 

Japanese stocks were lower in the morning trade, dragged by falls in energy stocks following declines in crude-oil prices overnight. Concerns about the economic outlook persist. Oil explorer Inpex was 2.5% lower. Mitsui & Co. was down 3.8% and Mitsubishi Corp. dropped 3.8% after reports that Russia would replace the Sakhalin-2 project operator. Meanwhile, Ryohin Keikaku was down 12% after the owner of Muji stores cut its fiscal-year net-profit view. Investors remain focused on Russia-Ukraine war and its implications for global trade and the monetary policy of major import. The Nikkei Stock Average was down 0.3% at 26310.54.

South Korea’s Kospi rose 0.3% to 2339.13 in early trade on retail and institutional buying after a two-session losing streak. Electronics, aviation and defense stocks were leading the rebound as some investors hunt for bargains. However, gains were likely to be capped by the country’s weakening export growth, persistent concerns about major global central banks’ tightening policy and slower economic growth. Index heavyweight and tech giant Samsung Electronics was 0.4% higher. Memory-chip maker SK Hynix added 0.3%.

Chinese stocks were lower in early trade, dragged by airlines, coal miners and auto makers. However, the market outlook was positive thanks to active trading activities, and companies’ interim reports would be a key market driver in July, Soochow Securities said in a note. Air China fell 4.2% and China Eastern Airlines lost 3.1%, while China Shenhua shed 3.2% and Great Wall Motor declined 3.0%. The Shanghai Composite Index fell 0.3% to 3389.09 and the Shenzhen Composite Index and the ChiNext Price Index were each 0.1% lower.

Markets in Hong Kong are closed Friday for a holiday.

FOREX 

Most Asian currencies weakened against USD in the morning session amid risk-off sentiment spurred by Wall Street’s losses overnight. The overall dampened mood in risk environment may continue to drive a quiet session in Asia, said IG’s market strategist Yeap Jun Rong in an email. Recent S&P Global data also indicate broad-based declines in manufacturing PMI figures across the region that reinforce global moderation in economic activities stemming from policy tightening, the strategist added. USD/KRW rose 0.5% to 1,294.06 and USD/TWD edged 0.1% higher to 29.76 while AUD/USD was down 0.3% at 0.6882.

METALS 

Gold was lower in early Asian trading, tracking declines in other precious metals, as a stronger US dollar draws interest away from the safe-haven asset, Commerzbank analysts said in a note. While gold had risen in response to the earlier downward revisions in US economic data, a pickup in dollar strength has more than erased those gains, the analysts said. The upcoming release of European inflation figures would be in focus, they added. Spot gold was 0.1% lower at $1,806.38/oz. Spot silver and palladium were also each 0.3% lower at $20.23/oz and $1,930.00/oz, respectively.

OIL SUMMARY 

Oil was higher in early Asian trading, supported by signs of tight supply as OPEC+ struggles to raise its production levels amid limited spare capacity, analysts from ANZ said in a note. That said, a worsening economic outlook is clouding demand expectations and could limit the price rise, they said. Also, US motorists were likely planning fewer-than-usual trips during the country’s peak driving season, which could hurt gasoline, and hence oil demand, the ANZ analysts said. Front-month Brent rose 0.7% to $109.81/bbl; WTI gained 0.6% to $106.41/bbl.

 
 
TOP HEADLINES 
 
China Manufacturing Output Rebounds as Covid Restrictions Ease 
S&P 500 Posts Worst First Half of Year Since 1970 
Japan's Large Manufacturers Sentiment Deteriorates, Tankan Survey Shows 
South Korea Export Growth Slowed Sharply in June 
New Zealand, European Union Settle on Free-Trade Agreement 
Indonesia's Jokowi Visits Ukraine and Russia, Warning Food Crisis Looms 
Shiploads of Russian Grain, Weather Ease Wheat Crisis 
Cooling Consumer Spending Points to Further Economic Slowdown 
Most Countries Lack Crypto Information-Sharing Laws, Watchdog Says 
Mortgage Rates Drop After Three Weeks of Increases 
U.S. Jobless Claims Edged Lower Last Week 
SpaceX Wins OK to Connect Planes, Boats and Other Vehicles to Internet Service 
Former Apple Lawyer Pleads Guilty to Insider Trading 
Micron Shares Slump on Muted Sales Forecast 
GM Slowly Ramps Up Hummer EV Output 
Musk Takes Unusually Long Twitter Break 
Atlantic City Casino Workers, MGM Reach Labor Agreement 
Enjoy Technology, Led by Ex-Apple Executive Ron Johnson, Files for Chapter 11 to Sell Itself 
Leon Black's Conspiracy Complaint Against Apollo Co-Founder Is Dismissed 
Singapore Private-Home Price Growth Accelerates 
Biden Backs F-16 Sales to Turkey Amid Deal to Expand NATO 
 
 

(END) Dow Jones Newswires

June 30, 2022 23:15 ET (03:15 GMT)

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

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