Indian Morning Briefing: Asian Markets Mostly Higher Amid Focus on China Evergrande

GLOBAL MARKETS
DJIA         34764.82   506.50   1.48%
Nasdaq       15052.24   155.40   1.04%
S&P 500       4448.98    53.34   1.21%
FTSE 100      7078.35    -5.02  -0.07%
Nikkei Stock 30169.83   530.43   1.79%
Hang Seng    24522.65    11.67   0.05%
Kospi         3125.40    -2.18  -0.07%
SGX Nifty*   17845.00    16      0.09%
*Sept contract

USD/JPY 110.36-37   +0.03%
Range   110.42   110.25
EUR/USD 1.1738-41   +0.01%
Range   1.1749   1.1736

CBOT Wheat Dec $7.176 per bushel
Spot Gold     $1,748.99/oz  0.3%
Nymex Crude (NY) $73.19    $0.96


U.S. STOCKS

The Dow Jones Industrial Average broke out of its September slump with its biggest two-day rally in more than six months, lifted by investors' growing confidence the economy can withstand the end of pandemic stimulus measures and troubles in Chinese property markets.

The blue-chip index added 506.50 points, or 1.5%, to 34764.82 in its largest one-day surge since July. The S&P 500 gained 53.34 points, or 1.2%, to end at 4448.98, while the Nasdaq Composite Index added 155.40, or 1%, to 15052.24 points. All three indexes are now higher on the week.

ASIAN STOCKS

Japanese stocks were broadly higher, led by especially strong gains in shippers and steelmakers, as concerns receded somewhat over the Chinese property sector. Investors were focusing on any developments over China Evergrande Group as well as the election of a ruling-party chief in Japan. The Nikkei Stock Average was up 1.9% at 30190.92.

South Korea's benchmark Kospi tracked Wall Street higher in early trade, supported by rebounding steelmakers. The index gained 0.2% to 3132.59. Shipbuilding company Hyundai Heavy Industries Co., which had a strong trading debut last week, continued to weaken after Thursday's 11% decline. The stock was last down 0.8%. Index heavyweight Samsung Electronics slips 0.3%.

Hong Kong shares rose in early Asian trade as investors seemed to be shrugging off Evergrande-related risk, according to IG. The benchmark Hang Seng Index was 0.2% higher at 24556.71 while the Hang Seng Tech Index was flat at 6300.47. Contagion risks were still present, but China's recent injection of liquidity and local governments preparing for a potential Evergrande downfall seem to indicate authorities' intentions of mitigating the economic risks, IG said. This is helping to soothe investor sentiment, it said. China Evergrande was 4.9% lower.

Chinese stocks are mixed in early trade, as losses by coal miners and commodities companies outweigh gains by some liquor makers. Coal companies' recent rally is losing steam as authorities step up efforts to stabilize prices, with Yanzhou Coal slipping 6.0% and China Shenhua Energy 4.3% lower. Baoshan Iron & Steel drops 1.9% and CITIC Pacific Special Steel loses 2.4%. Among gainers, index heavyweight Kweichow Moutai adds 1.8% and Wuliangye Yibin gains 1.3%. The Shanghai Composite Index declines 0.2% to 3635.85 and the Shenzhen Composite Index weakens 0.4%, though the ChiNext Price Index is 0.5% higher. FOREX

The ringgit may strengthen further as the U.S. dollar pulled back amid recovering risk appetite after the recent FOMC meeting, AmBank Research said. The unexpected jump in the number of new unemployment benefit claims in the U.S. last week was further contributing to the greenback's bearish movement. AmBank expected the ringgit to trade between 4.1624 and 4.1702 against the U.S. dollar on Friday, with resistance pinned at 4.1873 and 4.1957. USD/MYR was little changed at 4.1805. METALS

Gold was higher in early Asian trade, as investors shrugged off signals that the U.S. Federal Reserve would begin scaling back its asset-purchasing activity and possibly raise interest rates, Oanda said. "It's quite impressive just how relaxed investors are with the situation," Oanda said. Even so, the Fed's intention to taper should weigh on the precious metal, with Oanda expecting the precious metal to test the $1,740/oz level soon. Spot gold was 0.3% higher at $ 1,748.99/oz. OIL SUMMARY

Oil was higher in the Asian session. Demand for crude remains tepid, weighed by slowing aviation travel, Marex said. " Demand from the airline industry has slowed down in recent months" and remains well below pre-pandemic levels, the broker said. However, prices could be supported by signs of increased oil consumption from crude importer Japan. The country's crude inventory levels registered a net decrease of 882,390 kiloliters for the week of Sept. 12 to 18, compared with a week earlier, according to data from the Petroleum Association of Japan. Front-month Brent was 0.5% higher at $77.64/bbl and front-month WTI gained 0.4% to $73.59/bbl.

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  (END) Dow Jones Newswires
  09-23-21 2315ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

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