GLOBAL MARKETS DJIA 36338.30 -59.78 -0.16% Nasdaq 15644.97 -96.59 -0.61% S&P 500 4766.18 -12.55 -0.26% FTSE 100 7384.54 -18.47 -0.25% Nikkei Stock Closed Hang Seng 23322.42 -75.25 -0.32% Kospi 2988.32 10.67 0.36% SGX Nifty* 17430.50 -9 -0.05% *Jan contract USD/JPY 115.27-28 +0.15% Range 115.29 115.06 EUR/USD 1.1346-49 -0.22% Range 1.1380 1.1345 CBOT Wheat March $7.706 per bushel Spot Gold $1,828.94/oz Unch Nymex Crude (NY) $75.44 -$1.55 U.S. STOCKS
U.S. stock futures rose Sunday, indicating a positive start for Wall Street on the first trading day of 2022.
Dow Jones Industrial Average futures YM00 were up about 125 points, or 0.3%, Sunday evening. S&P 500 futures ES00 and Nasdaq-100 futures NQ00 also gained.
Stocks fell Friday on the last trading day of 2021, with the Dow DJIA dipping 59.78 points, or 0.2%, to close at 36338.30, while the S&P 500 SPX slipped 12.55 points, or 0.3%, to finish at 4766.18, and the Nasdaq Composite COMP dropped 96.59 points, or 0.6%, to end at 15644.97.
ASIAN STOCKS
South Korea's Kospi rose 1.0% to 3007.98 at the start of the first trading day of the year. Tech, internet and steel stocks led the gains. Strong trade data released during the New Year holiday was buoying investor sentiment. Exports in 2021 grew at the fastest pace in 11 years on brisk demand for semiconductors and other products. LG Chem rose 1.8% as its battery affiliate looks to raise up to $10.8 billion this month in what could be South Korea's biggest ever initial public offering.
Hong Kong stocks were lower in early trade, erasing opening gains. The benchmark Hang Seng Index was down 0.1% at 23380.77, extending a broad downturn in 2021 that erased 15% from the index. KGI Securities expected overall trading sentiment and volume to remain low, as the trading connection with China's A-share market was closed Monday on account of a holiday. The brokerage advised investors to monitor fund flows and sector allocation trends in the new year.
Markets in Japan, China, Australia and New Zealand are closed Monday for a holiday.
FOREX
Asian currencies consolidated against USD amid trading thinned by public holidays in several countries, including China and Japan. This week will put focus on the FOMC minutes due Wednesday and the non-farm payrolls report due Friday, IG said. Given the Fed's shift toward a quicker tapering process and expected three rate increases in 2022, the jobs report will be the key market risk event, IG added. USD/KRW rose 0.2 to 1,191.05 and USD/SGD edged 0.1% higher to 1.3499, while AUD/USD was down 0.1% at 0.7255.
The Malaysian ringgit could reverse its gains against the U.S. dollar in the first week of 2022 amid profit-taking activities and a potential strengthening in the greenback, Kenanga Research said. This comes after the ringgit's gains last week, driven by the prevalent risk-on mood amid receding Omicron fears, Kenanga said. A stronger-than-expected U.S. December jobs report and more hawkish FOMC minutes may give the dollar a strong fillip for this week. Nonetheless, the ringgit may continue to be supported around the 4.17-4.18 level against the dollar amid positive domestic economic prospects and higher crude oil prices. USD/MYR was 0.2% higher at 4.1730.
METALS
Gold was steady in the early Asian session, likely supported by USD weakness. Going forward in 2022, gold prices were expected to continue to form a strong base before moving higher on safe-haven demand, Phillip Futures said, noting current tensions between Ukraine and Russia. Gold prices were unlikely to slump as real interest rates and real yields could remain at historically low levels, very close to zero, until the "coast is clear" from Covid-19's strains, Phillip Futures added. Spot gold was little changed at $1,828.94/oz.
OIL SUMMARY
Oil rose in the morning Asian session on optimism over the demand outlook, driven by expectations that the global economic recovery will be able to weather the adverse effects from the Covid-19 Omicron variant. The key event for oil markets this week is likely the OPEC+ meeting on Jan. 4, when the group will decide whether to increase daily oil production among its members to 400,000 barrels a day starting in February. Front-month WTI crude oil futures were up 0.9% to $75.87/bbl, while Brent crude oil futures were 0.8% higher at $78.41/bbl.
TOP HEADLINES LG Energy Solution Starts Taking Orders for What Could Be South Korea's Biggest IPO AT&T, Verizon Refuse FAA Request to Delay 5G Launch Tesla Reports 87% Growth in Annual Vehicle Deliveries Omicron Takes a Toll on Businesses, From Airports to Bars and Supermarkets U.S., Europe Weigh Isolation Requirements as Omicron Disrupts Daily Life Winter Storms, Covid-19 Infections Drive U.S. Airport Snarls U.S. Companies Are Thriving Despite the Pandemic-or Because of It China Warns Walmart Against Removing Products Made in Xinjiang Stocks Face Rockier Path in 2022 as Fed Rate Increases Loom Democrats Seek Filibuster Changes to Pass Elections Bills Rising Threat From China Pushes U.S. and Japan to Deepen Military Cooperation U.S. on Sidelines as China and Other Asia-Pacific Nations Launch Trade Pact Singapore's Economy Grew Faster Than Expected in 4th Quarter Malaysia Manufacturing Activity Improved Further in December
(END) Dow Jones Newswires
01-02-22 2215ET
