GLOBAL MARKETS DJIA 33706.74 -292.30 -0.86% Nasdaq 12705.22 -260.13 -2.01% S&P 500 4228.48 -55.26 -1.29% FTSE 100 7550.37 8.52 0.11% Nikkei Stock 28780.47 -149.86 -0.52% Hang Seng 19690.27 -82.76 -0.42% Kospi 2471.57 -21.12 -0.85% SGX Nifty* 17678.00 -66 -0.37% *Aug contract USD/JPY 137.38-39 +0.33% Range 137.44 136.80 EUR/USD 1.0029-32 -0.09% Range 1.0045 1.0024 CBOT Wheat Sept $7.532 per bushel Spot Gold $1,745.10/oz -0.1% Nymex Crude (NY) $90.10 -$0.40 U.S. STOCKS
U.S. stocks were poised to open slightly lower on Monday, as investors prepared for another round of earnings reports from retailers and tech companies.
On Sunday night, Dow Jones Industrial Average futures lost 92 points, or 0.3%, while the S&P 500 futures fell 0.4%, and Nasdaq Composite futures slipped 0.6%.
U.S. stocks fell Friday, ending the week lower and snapping a four-week stretch of gains for the S&P 500, as investors second-guessed how aggressively the Federal Reserve will need to move to tame inflation.
The S&P 500 dropped 55.26 points, or 1.3%, to 4228.48 and fell 1.2% for the week. The Dow Jones Industrial Average fell 292.30 points, or 0.9%, to 33706.74 and lost 0.2% for the week. The Nasdaq Composite declined 260.13 points, or 2%, to 12705.22 and fell 2.6% for the week.
ASIAN STOCKS
Japanese stocks were lower, dragged by falls in electronics and tech stocks, as caution persists over the Fed's further tightening. Tokyo Electron Ltd. was down 2.6% and Rakuten Group was 2.4% lower. Misumi Group fell 3.7% after July revenue posted a paltry increase of 1.3% on year. The newest 10-year Japanese government bond yield rose to 0.210%, its highest since July 26, tracking U.S. Treasury yield gains on Friday. Investors were focusing on economic data ahead of Fed's Jackson Hole symposium later this week. The Nikkei Stock Average was down 1.0% at 28649.64.
South Korea's Kospi fell 1.3% to 2461.17 in early trade, dragged by losses in tech, internet and airline stocks. Renewed risk-off sentiment following hawkish comments by U.S. Federal Reserve officials were sapping appetite for local equities. Preliminary export data showing the country was on course for another trade deficit in August also weighed on sentiment. USD/KRW was up 0.8% at 1,335.50 on risk aversion. Index heavyweight Samsung Electronics fell 1.5%. Memory-chip maker SK Hynix lost 1.8%.
Hong Kong's Hang Seng Index turned positive, rising 0.1% at 19785.78 after opening lower. Gains were being supported by sportswear makers and property sector. The equity-market weakness seen at the open was being attributed to Fed hawkishness, said ING economists in a research report, noting Richmond Fed President Barkin's remarks suggesting the U.S. central bank won't balk at curbing inflation just because of recession fears. Worst performers on HSI includes ENN Energy falling 8.4%, Xiaomi Corp. declining 4.0% and Lenovo Group down 3.3%. The Hang Seng Tech Index was down 1.4% at 4133.17.
Chinese shares rose in early trade after opening lower, driven by gains among coal miners and home-appliance makers. The upturn followed the central bank's move to cut its benchmark loan prime rate in a bid to support the slowing economy. Shaanxi Coal added 3.0% and China Coal Energy was up 1.6%, while Midea Group and Haier Smart Home each advanced more than 1%. Among auto stocks, BYD Co. slid 1.7%, but Great Wall Motor jumped 5.4%. The Shanghai Composite Index rose 0.2% to 3264.32, the Shenzhen Composite Index climbed 0.1% and the ChiNext Price Index was 0.4% higher.
FOREX
Most Asian currencies weakened in the morning Asian session amid risk-off sentiment spurred by losses in regional equity markets and in U.S. stock futures. There appears to be some de-risking playing out ahead of the key Jackson Hole symposium to be held this week, together with a slew of U.S. economic data releases, said Yeap Jun Rong, market strategist at IG, in an email. USD/KRW edged 0.1% higher to 1,337.72 and USD/SGD rose 0.2% to 1.3937 while AUD/USD was up 0.2% at 0.6884.
METALS
Gold prices edged lower ahead of this week's Jackson Hole symposium. Fed Chair Powell's comments at the symposium may be a key avenue for the Fed to push back against the notable easing in financial conditions sparked by his past comments, which had caused markets to price in rate cuts immediately following the rate-increase cycle, said TD Securities strategists in a research report. As market expectations for rate cuts subside, speculative appetite in precious metals should dry up even further, the strategists added. Spot gold was down 0.1% at $1,745.10/oz.
OIL SUMMARY
Oil futures fell in early Asian trade on fears of a global economic slowdown caused by Fed rate increases. The number of U.S. oil rigs, an early indicator of future supply, was unchanged at 601 last week, according to Baker Hughes Co, as energy companies gradually increased production to pre-pandemic levels, Phillip Securities said in a markets commentary. Front-month WTI crude oil futures were 1.2% lower at $89.65/bbl; front-month Brent crude oil futures were 1.2% lower at $95.52/bbl.
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(END) Dow Jones Newswires
08-21-22 2315ET
