Asian Markets Rise Following Wall Street Rally |

DJIA                33376.48    526.74     1.60% 
Nasdaq              10709.37    162.26     1.54% 
S&P 500              3878.44     56.82     1.49% 
FTSE 100             7497.32    126.70     1.72% 
Nikkei Stock        26478.89     91.17     0.35% 
Hang Seng           19643.48    482.99     2.52% 
Kospi                2345.95     17.00     0.73% 
SGX Nifty*          18361.50     111.5     0.61% 
*Dec contract 
USD/JPY     131.80-81   -0.49% 
Range       132.47   131.66 
EUR/USD     1.0630-33   +0.24% 
Range       1.0635   1.0605 
CBOT Wheat March $7.676 per bushel 
Spot Gold $1,816.19/oz  0.1% 
Nymex Crude (NY) $78.45  $2.22 

Revived consumer sentiment boosted U.S. stocks.

The S&P 500 rose 1.5%, with each of its 11 sectors in the green. The Dow Jones Industrial Average advanced 1.6%, while the Nasdaq Composite added 1.5%.

Early gains accelerated after consumer confidence data jumped sharply in December to its highest level since April. Sentiment around the economy and labor market improved, while inflation expectations for the year ahead dipped to 6.7%-the lowest in more than a year.

Housing market data painted a mixed picture. Existing-home sales fell for a 10th straight month in November to extend the longest streak of declines on record. However, home prices-which have weighed on activity-dropped for the fifth straight month after peaking in June.

Some analysts said the combination of a more confident consumer and falling prices-as well as price expectations-is likely welcome news for Federal Reserve officials, who are working on controlling inflation without causing a major recession.

“The number one question is at what point can we stop worrying about inflation,” said Charlie Ripley, senior investment strategist for Allianz Investment Management. “The Fed doesn’t want to be in an environment where inflation is ping-ponging back-and-forth. They want it to be on a clear downward trajectory.”


Japanese stocks were higher, led by gains in auto and energy stocks, following strong U.S. consumer confidence data overnight and recent stock selloffs due to concerns about higher borrowing costs. The Nikkei Stock Average was up 0.5% at 26512.94.

South Korea’s Kospi rose 0.5% to 2340.75, tracking Wall Street’s rally overnight. A marginally more festive atmosphere prevails across stock markets, with Christmas now very much within sight for most investors, said Chris Beauchamp, chief market analyst at IG, in an email. USD/KRW was little changed at 1,280.61, according to FactSet.

Hong Kong’s Hang Seng Index rose 1.8% to 19509.32 in early trade, tracking gains on Wall Street overnight, supported by Chinese tech and property stocks. The sectors’ upturn came after Chinese securities regulator CSRC signaled support for real-estate developers and said it will promote the mechanism for cooperation for U.S.-China audit oversight.

Chinese shares opened higher, tracking gains on Wall Street overnight as inflation expectations eased, which could mean a slowdown of Fed rate hikes. Shares from developers to financials all rise. Greenland Holdings increases by 2.6% and Ping An Insurance rises by 1.7%. Xi’an Catering continued its rally, raising 3.9% in early trade. Chip makers and auto-related companies drag on the market, with Contemporary Amperex Technology falling 0.5%. The Shanghai Composite Index increases 0.6% to 3085.80, while Shenzhen Composite Index is 0.5% higher and ChiNext Price Index is up by 0.7%.


The dollar strengthened 0.3% against the euro and 0.6% against the yen following yesterday’s huge move higher by the yen following the Bank of Japan’s policy change. The WSJ Dollar Index gained 0.3% and 10-year Treasury yields rosese slightly to 3.691%. Goldman Sachs analysts said in a note they see USD/JPY moving back higher in the coming months under their baseline view markets are overpricing US recession odds and underpricing the Fed cycle. “Indeed, the yen is no longer even an outlier, or the worst performing G9 currency year-to-date, suggesting that there is limited sign of a special ‘YCC discount’ anymore. However, in the near term we expect markets to raise the odds of a more material BoJ shift, which remains a real possibility.” The firm closed its long USD/JPY recommendation and was placing forecasts under review to reassess.


Gold edged higher in the early morning Asian session, with lower U.S. Treasury yields increasing the allure of the non-interest-bearing precious metal. However, it looks like gold could struggle to get anywhere close to the $1,850/oz level unless a fresh major catalyst emerges, said Edward Moya, senior market analyst at Oanda, in an email. Spot gold was up 0.1% at $1,816.19/oz.


Oil edged higher in the Asian morning session. The EIA reported a 5.9 million barrel drop in U.S. crude-oil inventories in the week ended Dec. 16, while the Conference Board’s consumer confidence survey jumped to an eight-month high in December. “Bullish momentum continues to take oil markets by storm,” as Northern Hemisphere winter-related energy demand reality set in, said Stephen Innes, managing partner of SPI Asset Management, in an email. Front-month WTI crude-oil futures were 0.4% higher at $78.58/bbl; front-month Brent crude oil futures were 0.2% higher at $82.39/bbl.

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BHP Signs Agreement for $6.4 Billion OZ Minerals Takeover 
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(END) Dow Jones Newswires

12-21-22 2215ET

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