Indian Morning Briefing: Asian Markets Mostly Higher as Evergrande Worries Ease

GLOBAL MARKETS
DJIA             34258.32    338.48     1.00%
Nasdaq           14896.85    150.45     1.02%
S&P 500           4395.64     41.45     0.95%
FTSE 100          7083.37    102.39     1.47%
Nikkei Stock       Closed
Hang Seng        24627.47    405.93     1.68%
Kospi             3119.39    -21.12    -0.67%
SGX Nifty*       17656.50    103.50     0.59%
*Sep contract

USD/JPY   109.89-90   +0.08%
Range     109.92   109.75
EUR/USD   1.1696-99   +0.08%
Range     1.1701   1.1684

CBOT Wheat Dec $7.056 per bushel
Spot Gold  $1,762.52/oz -0.3%
Nymex Crude (NY) $72.03 $1.54


US STOCKS

U.S. stocks staged a comeback from their September rout after the Federal Reserve signaled that it could begin to reduce its bond purchases soon and raise interest rates as early as next year.

The Fed's decision sent stocks rocketing higher shortly after 2 p.m. ET, with the Dow gaining as much as 520.58 points. But as Mr. Powell spoke at a news conference in the afternoon, indexes bounced around before eventually paring their gains for the day.

The blue-chip index finished the day up 338.48 points, or 1%, to finish at 34258.32. The S&P 500 added 41.45 points, or 1%, to end at 4395.64. The Nasdaq Composite jumped 150.45 points, or 1%, to 14896.85.

ASIAN STOCKS

Markets in Japan are closed Thursday for a holiday.

South Korea's Kospi fell 0.9% to 3111.38 in early trade, as the market reopened following a three-day holiday. Auto shares and steelmaker Posco were weighing on the index. Internet companies were also driving the declines.

Hong Kong shares rose in early trade, reopening after a holiday on Wednesday, as Evergrande-related worries dissipated. China Evergrande Group's flagship property business Wednesday said it would make an interest payment on an onshore bond. The benchmark Hang Seng Index was 2.0% higher at 24705.41 and the Hang Seng Tech Index climbed 2.4% to 6396.86. China Evergrande, which opened 15% higher at HK$2.61, was extending gains, last rising 28%. Other property- related stocks were are also rallying.

Chinese stocks rose in early trade, supported by the construction-material, property and utilities sectors. Investor sentiment appeared to turn positive for China Evergrande, with its shares in Hong Kong jumping 28%. Electricity companies continued to rally amid expectations of tariff reform. The Shanghai Composite Index rose 0.7% to 3655.32, the Shenzhen Composite Index climbed 0.5% and the ChiNext Price Index edged 0.3% higher.

FOREX

Most Asian currencies weakened against USD on Fed Chair Powell's hawkish remarks overnight. Powell affirmed that the Fed is very close to meeting its "substantial further progress" toward its dual mandate and may announce a decision to begin tapering asset purchases at the next FOMC meeting in November, DBS said. If this occurs, the Fed could completely withdraw its monetary stimulus by mid-2022 and possibly bring forward rate increases in late 2022, DBS added. USD/KRW edged 0.1% higher to 1,183.79, USD/JPY was up 0.1% at 109.90, while USD/SGD was little changed at 1.3537.

METALS

Gold was lower in early Asian trade after the U.S. Federal Reserve signaled a scaling back of its asset-purchasing activity and possible interest-rate hikes, Oanda said. "With a taper now almost nailed on this year and rates potentially rising from next, it seems gold's appeal is beginning to wane," it said, adding that the precious metal could fall to as low as $1,740 an ounce. However, Oanda thought much of the risk looked priced in, so "just because the Fed is moving to a tightening path, it doesn't mean gold is in freefall." Spot gold was 0.3% lower at $1,762.52/oz.

OIL SUMMARY

Oil edged lower in early Asian trading, amid signs of excess supply of Middle Eastern crude in the Asian market, according to S&P Global Platts. "Unsold supplies of Middle East crude could weigh on sentiment for the last few days of the November-loading cycle," Platts said. While this would mainly affect prices of Middle Eastern benchmarks like Dubai or Oman crude, signs of faltering Asian demand could also put downward pressure on other international oil benchmarks. Front-month Brent and WTI were each 0.3% lower at $75.96/bbl and $72.04/bbl, respectively.

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  (END) Dow Jones Newswires
  09-22-21 2315ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

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