Indian Morning Briefing: Asian Markets Mostly Lower

DJIA           35084.53    153.60     0.44%
Nasdaq         14778.26     15.68     0.11%
S&P 500         4419.15     18.51     0.42%
FTSE 100        7078.42     61.79     0.88%
Nikkei Stock   27311.83   -470.59    -1.69%
Hang Seng      25956.51   -358.81    -1.36%
Kospi           3211.42    -31.23    -0.96%
SGX Nifty*     15764.50     -74.5    -0.47%
*Aug contract

USD/JPY   109.53-54 +0.05%
Range     109.60   109.37
EUR/USD   1.1882-85 -0.04%
Range     1.1897   1.1879

CBOT Wheat Sep $7.052 per bushel
Spot Gold  $1,827.45/oz 0.01%
Nymex Crude (NY) $73.60 $1.21


The Dow Jones Industrial Average and the S&P 500 rose 0.4%, but both benchmarks fell shy of fresh records as new data suggested the economic recovery has started to slow. The Nasdaq Composite also rose, gaining 0.1%.

The gains followed data showing gross domestic product grew by 6.5% on an annualized basis in the second quarter, up slightly from earlier in the year but well below analysts' forecasts of 8.4% growth. Meanwhile, jobless claims, a proxy for layoffs, came in at 400,000, resuming their downward trajectory but coming in above projections.


Japanese stocks were down, dragged by falls in electronics stocks, as the yen strengthened and concerns grew about Covid-19 containment measures. Local media have reported that the government was considering expanding Covid-19 state- of-emergency measures that are in place for Tokyo and Okinawa to more regions in response to a rise in infections. Earnings are being closely watched, with Denso and Takeda Pharmaceutical set to report results later in the day.

South Korea's benchmark Kospi was down 0.7% at 3218.50 in early trading, dragged by electronics and finance stocks. Enthusiasm about solid corporate earnings was beginning to cool as most large-cap companies have announced 2Q results. A U.S. gross domestic product growth report overnight, that wasn't quite as strong as expected, was also dampening investor sentiment.

Hong Kong shares fell in morning trade, weakening after Thursday's rebound on Beijing moving to reassure global investors amid a regulatory clampdown. Tech stocks led losses. The Hang Seng TECH Index was 3.7% lower at 6702.26. Investor confidence might not be restored in the short term due to authorities tightening regulations, KGI Securities said. The Hang Seng Index dropped 1.4% to 25955.50, and was down 5.0% this week.

Chinese stocks fell in morning trade, dragged by consumer-related sectors. Sentiment has been affected by social reforms and regulatory actions that have exceeded expectations, Ping An Securities said, adding that the market may be entering an adjustment phase but remains supported overall. The Shanghai Composite Index dropped 0.9% to 3380.71, the Shenzhen Composite Index lost 0.5% and the ChiNext Price Index slipped 0.7%.


Most Asian currencies weakened against USD amid a risk-off mood sparked by losses in several regional equity markets. The longer-term outlook for Asia's markets could still depend on whether China can calm investors' nerves over future regulatory crackdowns and the growth effect on its companies, IG said. Markets may also be looking ahead toward China's official manufacturing and services PMI data due on Saturday, IG added. USD/KRW gained 0.3% to 1,147.12, USD/SGD edged 0.1% higher to 1.3538 and AUD/USD was little changed at 0.7390.


Gold was mostly flat alongside expectations that the Federal Reserve won't abandon its accommodative monetary policies anytime soon, Oanda said, pointing to U.S. economic data that fell short of its expectations. "A downside surprise in both GDP and jobless claims justifies the Fed's dovish stance," it said. "That should provide a short-term bullish environment for bullion." Oanda said that if gold can exceed the $1,850/oz resistance level, technical buying could support a strong rally back toward $1,900/oz. Spot gold was flat at $1,827.45/oz.


Oil fell in Asia morning trade as pandemic restrictions in the region could weigh on demand. Traffic was substantially below normal in big cities such as Kuala Lumpur, Bangkok, Jakarta and Singapore, as the spread of Covid-19 is battled, ANZ said. Front-month WTI crude oil futures dropped 0.6% to $73.22/bbl. Front-month Brent crude oil futures fell 0.5% tro $75.66/bbl.

Japan Apr-Jun Industrial Output +1.0% On Quarter
Stocks Close Higher After GDP Data
U.S. Import Surge Overwhelms Warehouse Space Near Ports
Robinhood's Stock Price Falls After IPO
Credit Suisse Failed to Act on Archegos Risks
Didi Weighs Going Private to Placate China, Investors
The U.S. Economy's Prospects Looked Bright, Until the Delta Variant Surged
Jobless Claims Resumed Decline Last Week
Startup Medical-Device Acquisitions Picked Up in First Half
EU Overtakes U.S. in Covid-19 Vaccines
Biden Says Federal Employees Must Get Covid-19 Shots or Wear Masks, Test Regularly
Congress Passes $2.1 Billion Bill to Upgrade Capitol Security, Aid Afghan Refugees
As Delta Variant Spreads, Some Vaccinated People Test Positive for Covid-19
FDA Lets Pharmacies Substitute Branded Insulin With Knockoff Product
China Telecom Plans Shanghai Listing
Procter & Gamble CEO David Taylor to Step Aside
National Australia Bank Plans On-Market Share Buyback
Origin Energy Flags $1.67 Billion in Noncash Charges
Boeing Space Flight Postponed After Mishap at Space Station

  (END) Dow Jones Newswires
  07-29-21 2315ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.