GLOBAL MARKETS DJIA 34086.04 368.95 1.09% Nasdaq 11584.55 190.74 1.67% S&P 500 4076.60 58.83 1.46% FTSE 100 7771.70 -13.17 -0.17% Nikkei Stock 27428.12 101.01 0.37% Hang Seng 21807.58 -34.75 -0.16% Kospi 2441.67 16.59 0.68% SGX Nifty* 17850.00 98 0.55% *Feb contract USD/JPY 130.07-08 -0.02% Range 130.21 129.86 EUR/USD 1.0853-56 -0.10% Range 1.0871 1.0853 CBOT Wheat March $7.612 per bushel Spot Gold $1,926.90/oz -0.1% Nymex Crude (NY) $79.03 $1.13 US STOCKS
U.S. stock indexes rose and made big monthly gains, a reprieve for investors after a bruising 2022.
The tech-focused Nasdaq Composite jumped 1.7% and gained 10.7% in January, off to its best start to the year since January 2001, when it gained 12%.
The S&P 500 rose 1.5% on the day, while the Dow Jones Industrial Average added 1.1%. The indexes are up 6.2% and 2.8%, respectively, in January, their best performances since November.
Increasing confidence that interest rates are nearing their ultimate level has boosted stocks, particularly growth segments of the market. Speculative, heavily shorted stocks have led this year's rally.
"With unemployment at 3.5% and the economy still adding more than 200,000 jobs per month, it's way too premature to suggest that the Fed's work is done," said Hans Olsen, chief investment officer of Fiduciary Trust Company. "Investors' expectations are getting a bit ahead of themselves. We're in the early stages of normalizing inflation -- the last 100 yards will be tough."
ASIAN STOCKS
Japanese stocks were higher in early trade, led by tech and insurance stocks as hopes continued for slower tightening from the Fed. Earnings are in focus, as is the Fed's policy decision later on. The Nikkei Stock Average was up 0.7% at 27515.00.
South Korea's benchmark Kospi was 0.5% higher at 2436.90, led by electronics and internet stocks. Wall Street's gains overnight buoyed sentiment among investors, who are largely shrugging off weak trade data for January and downbeat corporate earnings from some large-cap companies.
Hong Kong stocks were slightly higher in morning trading, as the market continued to ease from last week's rally following a long holiday. The benchmark Hang Seng Index gained 0.4% to 21933.95. Profit-taking pressure may persist, after the market's bullish run since late 2022, analysts at Industrial Securities International said in a research note. Net selling has risen significantly in recent southbound fund flows, a sign of Chinese investors' inclination to lock in profits from previous gains, they noted. Technical factors also suggest that the HSI may enter a period of volatility, the analysts added.
Chinese shares rose, with investors optimistic about the U.S. Fed meeting and the likely slower pace of rate raises ahead. Increasing confidence that interest rates are nearing their ultimate level has boosted global stock markets. Chip makers and insurance companies led gainers. Property stocks weighed on the market. ??The Shanghai Composite Index rose 0.2% to 3262.20, the Shenzhen Composite Index was up 0.2% and the ChiNext Price Index was 0.4% higher.
FOREX
Asian currencies consolidated against USD ahead of the FOMC meeting outcome due later today. Market participants are nervous over a possible hawkish policy surprise from central banks including the Fed this week, said MUFG Bank senior currency analyst Jeff Ng in a research report. Also, a lot of good news has already been priced into markets on expectations of China's economy reopening more fully, Ng added. USD/KRW fells 0.2% to 1,231.40, USD/SGD was little changed at 1.3136 and AUD/USD edged 0.1% lower to 0.7048.
METALS
Gold prices were slightly lower in early Asia trade, extending a rangebound trading pattern marked in recent sessions as the precious metal pulls back after soaring gains. Analysts at metals market research firm Metals Focus said in a note that gold's recent rally has mainly been driven by expectations of a potential global recession, which may lead the Fed to slow interest-rate increases and raise gold's risk-reward profile. But the Fed's hawkish stance may also persist amid recent resilient economic data from the U.S. and continued inflation risk due to geopolitical tensions, the analysts cautioned. The upcoming Fed meeting will be "very important" for investors to monitor, they said. Spot gold was down 0.1% at $1,926.90/ounce.
OIL SUMMARY
Oil prices were slightly higher in early Asia trade, recovering from recent losses triggered in part by easing supply concerns amid strong Russian exports data. Analysts at Galaxy Futures said investors' risk appetite may be decreasing ahead of the upcoming Fed meeting and guidance from oil producer group OPEC and its allies. The brokerage expects continued volatility in the near term as investors weigh the risk of a potential global recession and the supply impact of geopolitical factors. Front-month WTI futures advanced 0.3% to $79.19/bbl; front-month Brent rose 0.3% to $85.67/bbl.
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(END) Dow Jones Newswires
01-31-23 2215ET
