Lending markets

Asian markets follow Wall Street gains

GLOBAL MARKETS 
DJIA         32637.19   516.91   1.61% 
Nasdaq       11740.65   305.91   2.68% 
S&P 500       4057.84    79.11   1.99% 
FTSE 100      7564.92    42.17   0.56% 
Nikkei Stock 26840.10   235.26   0.88% 
Hang Seng    20732.21   616.01   3.1% 
Kospi         2635.52    23.07   0.88% 
SGX Nifty*   16263.00    87      0.54% 
*June contract 
 
USD/JPY  126.70-71  -0.30% 
Range    127.19   126.68 
EUR/USD  1.0755-58  +0.25% 
Range    1.0766   1.0717 
 
CBOT Wheat July $11.432 per bushel 
Spot Gold     $1,850.90/oz  Unch 
Nymex Crude (NY) $113.98    $3.65 
 
 
U.S. STOCKS 

U.S. stocks rose on Thursday and the Dow Jones Industrial Average posted a fifth consecutive day of gains after strong retail results lifted market sentiment.

Encouraging reports from Macy’s, Dollar General and Dollar Tree helped counter a gloomier outlook for retailers last week, when results from Walmart and Target raised concerns that rising costs could erode profits.

Dow industrials gained 516.91 points, or 1.6%, to 32,637.19, down 11% from their record high in January. The S&P 500 advanced 79.11 points, or 2%, to 4,057.84. The tech-heavy Nasdaq Composite climbed 305.91 points, or 2.7%, to 11,740.65, helped by gains in shares of Apple, Microsoft, Amazon.com and Tesla.

 
 
ASIAN STOCKS 

Japanese stocks were higher, driven by gains in electronics stocks, as worries about borrowing costs eased and after US stocks rose overnight on strong retail results. Lasertec gained 4.1% and Sony Group rose 3.1%. Among individual movers, Nippon Yusen gained 5.5% following the announcement of a stock split and a higher dividend forecast. Toyota Tsusho was up 5.0% after announcing plans to take full control of wind energy developer Eurus Energy Holdings. SoftBank Group rose 4.5% on gains in US tech stocks. Investors focused on movements in bond yields, the yen and crude oil prices. The Nikkei Stock Average was up 1.3% at 26,944.59.

South Korea’s Kospi rose 1.2% to 2643.18 in early trade, driven by gains in electronics, retail and chemicals stocks. Wall Street’s overnight rally after strong retail results helped boost investor sentiment. Renewed appetite for riskier assets sent USD/KRW down 0.5% to 1,261.00. Semiconductor stocks were higher, following their US peers which rose. Index heavyweight Samsung Electronics gained 1.2%. Memory chip maker SK Hynix rose 2.4%. Chip-making equipment supplier Hanmi Semiconductor added 2.1%. The E-mart retailer rose 1.3%, ending a three-game losing streak.

Hong Kong’s Hang Seng Index rose 3.0% to 20721.20, tracking Wall Street’s gains overnight. The rally in US equities and the sharp rise in Chinese tech names in the US ADR market should spur a rebound in local equities today, KGI Research said in its morning commentary. Gains on the HSI were widespread, with Alibaba Group jumping 12%, Wuxi Biologics 7.4% and Li Ning 6.9%. The Hang Seng TECH index rose 4.5% to 4216.07.

Chinese stocks were higher early in trade, trailing broad gains among other Asian stocks. The Shanghai Composite Index rose 0.4% to 3136.71, the Shenzhen Composite Index gained 0.8% to 1970.15 and the ChiNext Price Index rose 1.3% to 2351 ,40. Market reactions to China’s industrial earnings data would be closely watched, OCBC analysts said in a note. Developments in the financial sector could also be a focus of concern, after the central bank stepped up support for small and micro businesses by encouraging financial institutions to set up a long-term facility to lend to such businesses, they said. added. Bank of China gained 0.3% and Industrial & Commercial Bank of China gained 0.2%.

FOREX 

Most Asian currencies strengthened against the U.S. dollar amid risky sentiment sparked by gains on Wall Street overnight and in most regional stock markets. Risk sentiment was boosted by strong earnings and a positive outlook for some U.S. retailers, said Tina Teng, market analyst at CMC Markets. The broad relief rally suggests investors may have overreacted to a recessionary scenario that could have been triggered by central banks’ approaching rate hikes, the analyst added. USD/SGD fell 0.2% to 1.3710 after earlier touching 1.3701, its lowest intraday level since April 25, according to FactSet. USD/KRW fell 0.3% to 1,256.68 and AUD/USD gained 0.4% to 0.7124.

METALS 

Gold prices were little changed in early Asian trading after rising overnight as the greenback extended its recent decline as investors turned back to equities. Safe-haven buying of the precious metal was supported by prospects of an economic slowdown due to Covid-19 lockdowns in China and the Russian-Ukrainian conflict, but that could be offset by worries of a downturn cycle. aggressive rate hike by the US federal government. Reserve, ANZ analysts said in a note. “Ultimately, what inflation does over the next two months will have a big part to play in gold’s performance,” they added. Spot gold was little changed at $1,850.90 an ounce.

OIL SUMMARY 

Oil prices fell slightly at the start of Asian trading, after rising overnight on data that showed falling U.S. crude and gasoline inventories ahead of the summer driving season. Strong demand amid tight supply should continue to tighten the market, ANZ analysts said in a note. “Although the EU is struggling to reach an agreement on Russian oil sanctions, supplies are increasingly tight,” analysts said. First-month WTI and Brent crude oil futures were each down 0.1% at $113.95/bbl and $117.29/bbl, respectively.

 
 
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(END) Dow Jones Newswire

05-26-22 2315ET