Indian Morning Briefing: Asian markets mostly lower at the start of the week

Global Markets DJIA 32845.13 315.50 0.97% Nasdaq 12390.69 228.09 1.88% S&P 500 4130.29 57.86 1.42% FTSE 100 7423.43 Without Nikkei Stock 27908.81 0.17.17 0.39% Hang Seng 19941.84 -214.67 -1.07% Kospi August Contract USD/JPY 132.41-42 – 0.62% Range 133.57 132.08 EUR/USD 1.0238-41 +0.13% Range 1.0243 1.0206 CBOT Wheat September $8.076 Per Bushel Spot Gold $1,763.47/oz -0.1% Nymex Crude (NY) $98.17 $1.75 US Stock

US stocks are likely to fall on Monday ahead of another busy earnings week.

On Sunday night, the Dow Jones Industrial Average futures were down 133 points, or 0.4%, while the S&P 500 futures fell 0.4% and Nasdaq Composite futures fell 0.4%.

Major stock indexes rose on Friday to end their best month since 2020, retracing some of their losses in a disappointing first half.

The S&P 500 rose 57.86 points, or 1.4%, to 4130.29. Dow Industrials rose 315.50 points, or 1%, to 32845.13. The Nasdaq Composite ended 228.09 points, or 1.9%, higher at 12390.69. All three gauges ended the week on a high.

The S&P 500 gained 9.1% in July, while the Dow Jones Industrial Average gained 6.7%, the strongest monthly performance for each index since November 2020. The tech-heavy Nasdaq Composite climbed 12% for its best month since April 2020.

Still, the major indices are deep in negative territory for 2022, with the S&P 500 ending in June its worst first half since 1970. The benchmark is now down 13% for the year.

asian stock

The Nikkei stock average was flat at 27807.99 as gains in auto and machinery stocks helped offset losses in tech and electronics stocks. Denso rose 3.6% and Isuzu Motors rose 2.3%. Sony Group dropped 5.8% after cutting fiscal year net profit. Fujitsu slipped 9.0% after falling 28% year on year in 1Q net profit. Investors were focused on earnings and House Speaker Nancy Pelosi’s visit to Asia. Astellas Pharma and Shionogi were to announce their results later.

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South Korea’s benchmark Kospi ended 0.1% lower at 2448.80 in early trade, as electronics and utilities stocks retreated. Lower-than-expected July exports are weighing on investor sentiment, as the country posted a trade deficit for the fourth straight month, as energy imports surged and shipments to China’s biggest trading partner China declined. Index heavyweight Samsung Electronics fell 0.8% on gains after solid gains last week. Memory-chip maker SK Hynix loses 0.6%. State utilities Korea Electric Power and Korea Gas are down 1.3% and 0.9%, respectively. Meanwhile, shipbuilders move on to faster contract wins. Hyundai Heavy Industries rose 5.2%.

Hong Kong’s Hang Seng Index fell 1.1% to 19925.89. Data released on Sunday showed China’s official gauge of factory activity fell to 49.0 in July, compared to the average estimate from a WSJ survey of 50.3. Unfavorable factors including a weak China PMI manufacturing index will affect the local stock market, KGI Research said in its morning remarks. The worst performers on HSI included Country Garden Services down 9.6%, Country Garden Holdings down 4.0% and Alibaba’s Health Information Technology declined 3.6%. Alibaba Group lost 3.7% on Friday after the US SEC listed Chinese companies at risk of being delisted from US exchanges. The Hang Seng Tec Index was down 1.6% at 4261.20.

Chinese stocks were lower in early trade, weighed down by the electronics and renewable-energy sectors. Soocho Securities said in a note that the government has not taken further measures to stimulate consumption, which has fallen short of expectations and has led to vulnerabilities in the respective sectors. LuxShare Precision declined 1.5% and Noura Technology fell 3.8%, while Longhi Green Energy declined 3.0% and Tongwei Company lost 2.5%. Beneficiaries included coal miners and wine producers. The Shanghai Composite Index was down 0.7% at 3230.49, the Shenzhen Composite Index was down 0.7% and the Chinanext Price Index was down 1.0%.

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foreign currency

Most Asia and G10 currencies strengthened against the USD in the Asian morning session amid ongoing prospects of a less aggressive Fed tightening. Stephen Innes, managing partner at SPI Asset Management, said in an email that expectations around a rapidly slowing US economy indicate a less aggressive tightening. Innes said markets have priced a more jumbo Fed rate-hike scenario, and the recent drop in Treasury yields has resulted in the elimination of long USD positions. USD/JPY fell 0.6% to 132.43 and USD/SGD fell 0.2% to 1.3790, while AUD/USD rose 0.2% to 0.6997.


Gold prices fell in early Asian trade amid rising Treasury yields, adding to the attractiveness of USD-denominated fixed-income assets. Strategists at TD Securities said last Friday’s continued rise in the US employment cost index would not allow the Fed to signal that its rate-hike cycle was done, and that there were risks that the Fed would open an early against speaker market expectations. The Feds can push the axle back. in a research report. TD Securities said it expects gold’s recent rally to eventually fade. Spot gold was down 0.1% at $1,763.47 an ounce.

oil summary

Oil prices were lower in early Asian trade amid uncertainty over the outcome of the OPEC+ meeting this week. The Philips Securities research team said in its morning remarks that the group would consider keeping oil output unchanged for September despite calls from the US for more supplies, but a modest increase in output is also expected to be discussed. Front-month WTI crude oil futures were 0.7% lower at $97.91 a barrel and Brent crude oil futures were 0.6% lower at $103.35 a barrel.

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Top headlines China’s manufacturing output slows expansion in July China’s construction, property sector shows long road to recovery market for share in private-equity managers, resists broader slowdown Australia’s domestic gas in 2023 Faced with shortages, watchdog says Pelosi travels with delegation to Asia South Korea records trade deficit for fourth consecutive month amid Chinese warnings not to travel to Taiwan Iraqi cleric calls for changes to constitution, elections, deepening political crisis with Russia as Ukraine prepares for new phase of war Southern counterblow US Global network eyes sanctions against sanctions that believe shipping Iranian oil to the US will have the power to negotiate drug prices under the Manchin-Schumer bill Fall in food prices Reduction of upward pressure on global inflation Continued food-for-farm giants Supply Problems Expected Banana Boat Sunscreen Spray Recalls Over Carcinogen Presence Benzene Auto Makers Expec T Defense Firms Riding Economic Slowdown With Car Sales Hurt by Staff Shortage Amid Rising Weapons Demand Boeing St. New offers for Louis-area workers delayed demand for a strike monkeypox vaccine, and just one small Danish company introduced Alex Jones as the parent of InfoWars, a Texas defamation company that went bankrupt during a defamation lawsuit, Tim Hortons Coffee. And want to settle lawsuits with pastries

(END) Dow Jones Newswires

July 31, 2022 23:15 ET (03:15 GMT)

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