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Indian Morning Briefing: Asian markets mostly up ahead of US inflation data

DJIA             32381.34    229.63     0.71% 
Nasdaq           12266.41    154.10     1.27% 
S&P 500           4110.41     43.05     1.06% 
FTSE 100          7473.03    121.96     1.66% 
Nikkei Stock     28590.88     48.77     0.17% 
Hang Seng        19425.57     63.32     0.33% 
Kospi             2438.77     54.49     2.29% 
SGX Nifty*       18045.50     104.0     0.58% 
*Sept contract 
USD/JPY    142.55-56    -0.19% 
Range      142.87   142.33 
EUR/USD    1.0130-33    +0.10% 
Range      1.0147   1.0120 
CBOT Wheat Sep $8.412 per bushel 
Spot Gold  $1,725.97/oz 0.1% 
Nymex Crude (NY) $87.86  $1.07 

US equities advanced ahead of key inflation data which is expected to show further cooling in consumer prices.

The S&P 500 gained 1.1%. The Dow Jones Industrial Average gained 0.7% while the tech-heavy Nasdaq Composite Index climbed 1.3%. All three indices recorded their fourth straight trading day of advances.

“What is driving the markets the most right now is investor optimism about lower inflation,” said Michael Arone, chief investment strategist for the U.S. ETF business at State. Street Global Advisors. “We’re in this period where earnings season is over, and it’s all about the biggest story of the year: the Fed and what the final target fed funds rate is.”


The Nikkei Stock Average rose 0.1% to 28,559.17 in morning trading as gains in railroad and airline stocks helped offset losses in auto and electronics stocks . The Topix Broad Market Index was down 0.1% at 1978.88. Investors focused on US inflation data due later in the day.

South Korea’s benchmark, the Kospi, rose 1.5% to 2419.23 after the holiday, following the rise in U.S. stocks overnight ahead of key inflation data. Developments relating to North Korea are likely to be in focus, following comments from the International Atomic Energy Agency that the country has continued to operate a uranium enrichment facility at the site of Yongbyon, amid speculation that he may be preparing for his first nuclear test since 2017.

Hong Kong’s Hang Seng index rose 0.3% to 19421.34 after the holiday, buoyed by gains in auto and energy stocks. Developments related to China’s economic policies are likely to be the focus. “Given continued signs of slowing growth, there is growing expectation that the government will do more through stimulus, either before or after the Party Congress which begins on October 16,” analysts said. of Commerzbank in a note.

Chinese stocks rose in early trading as the market returned from the Mid-Autumn Festival holiday. August data released after the market closed on Friday showed new yuan lending rose from July, while total social financing beat market expectations. Gains among stocks were led by electronics, liquor makers and software vendors. The Shanghai Composite Index rose 0.1% to 3265.73, the Shenzhen Composite Index rose 0.4% and the ChiNext Price Index rose 0.4%.


Asian currencies were mixed against the US dollar in the Asian morning session, but could strengthen on risk appetite, driven by gains in regional equity markets. Asian currencies are set to extend their gains as risk sentiment remains strong ahead of August CPI data in the United States, due later today, ING said in a commentary, noting that the report is expected to show a slowdown in headline inflation, thanks to the drop in crude oil. prices. USD/KRW edged down 0.1% to 1,374.20, USD/SGD was little changed at 1.3963 and AUD/USD fell 0.1% to 0.6883.


Gold prices were slightly higher at the start of Asian trading as a decline in the US dollar and Treasury yields helped support demand for the precious metals ahead of key US inflation data. “The latest wave of hawkishness from the ECB flies in the face of all the Fed talk about another significant rate hike,” Edward Moya, senior market analyst at Oanda, said in a note. “This is a turning point in gold trading and if inflation continues to ease, bullion should continue to stabilize here,” he added. Spot gold was up 0.1% at $1,725.97 an ounce.


Oil prices were slightly higher at the start of Asian trading on a weaker US dollar and as negotiations over the Iran nuclear deal hit another snag. ANZ analysts say the outlook for oil still looks challenging as Chinese officials are expected to tighten lockdowns ahead of the Communist Party meeting in October. “Local officials said an outbreak at one of China’s top media schools in Beijing should be eradicated as soon as possible,” they said in a note. China is one of the world’s major oil importers. First-month WTI and Brent futures were each up 0.1% at $87.89/bbl and $94.12/bbl, respectively.

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(END) Dow Jones Newswire

September 12, 2022 11:15 p.m. ET (03:15 GMT)

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