Indian Morning Briefing: Asian Markets Mostly Higher

GLOBAL MARKETS
DJIA             34746.25     -8.69    -0.03%
Nasdaq           14579.54    -74.48    -0.51%
S&P 500           4391.34     -8.42    -0.19%
FTSE 100          7095.55     17.51     0.25%
Nikkei Stock     28496.61    447.67     1.60%
Hang Seng        25312.55    474.70     1.91%
Kospi             Closed
SGX Nifty*       17916.50      -3.0    -0.02%
*Oct contract

USD/JPY    112.51-52  +0.25%
Range      112.53   112.05
EUR/USD    1.1571-74  -0.03%
Range      1.1581   1.1564

CBOT Wheat  Dec $7.340 per bushel
Spot Gold  $1,759.11/oz  0.1%
Nymex Crude (NY) $79.54 $1.24


US STOCKS

U.S. stocks hugged the flatline for the session but ended a volatile week with modest gains.

The S&P 500 edged lower 0.2% as of the 4 p.m. ET close of trading. The broad index had risen for three straight sessions. The Nasdaq Composite fell 0.5% while the Dow Jones Industrial Average edged less than 0.1% lower.

All three indexes held on to weekly gains. The S&P 500 and Dow advanced around 0.8% and 1.2%, respectively, this week. The Nasdaq Composite added 0.1%.

Volatility has returned to markets in recent sessions, with the S&P 500 swinging at least 1% for three out of four days and other assets from bonds to commodities recording giant moves.

Throughout the week, investors remained focused on surging energy prices, concerns about inflation and negotiations on the debt ceiling. Lawmakers struck a deal for a short-term extension to the debt limit in the Senate on Thursday, stoking a rally in the stock market after several days of uncertainty.

ASIAN STOCKS

Japan's Nikkei Stock Average was 1.6% higher at 28487.36, turning positive after being dragged earlier by falls in electronics stocks, following disappointing U.S. jobs data on Friday. Fiscal stimulus and any other policy steps from new Prime Minister Fumio Kishida were being closely watched.

Markets in South Korea are closed Monday for a holiday.

Hong Kong shares rose after the Biden administration began trade-policy talks with China late Friday with a virtual meeting between U.S. Trade Representative Katherine Tai and Chinese Vice Premier Liu He. The virtual talks were positive for Hong Kong stocks, KGI Research said. Meituan jumped 7.5% even after the food-delivery giant was fined more than $533 million on Friday for anticompetitive practices. Lenovo slid 12% after withdrawing its application to issue Chinese depositary receipts on the Shanghai Stock Exchange. The Hang Seng Index rose 2.0% to 25327.61 and the Hang Seng TECH Index was up 2.7% at 6372.54.

Chinese stocks diverged in early trade, as lenders and liquor makers rose, while cyclical sectors weighed. Banks resumed an uptrend that started late last month, with China Merchants Bank rising 4.7%, Ping An Bank up 4.2% and Industrial Bank 3.3% higher. The Shanghai Composite Index rose 0.3% to 3602.12, the Shenzhen Composite Index was flat and the ChiNext Price Index was 0.4% higher.

FOREX

Asian currencies strengthened against USD, as gains in regional equity markets spurred appetite for risky assets. Sustained USD Index gains beyond the 94.00 level were proving tough to come by, said Westpac. However, Fed tapering prospects were intact and surging energy prices were casting a cloud on global rebound outlook, which meant USD Index dips could be short-lived, Westpac added. The ICE USD Index was little changed at 94.08. USD/KRW fell 0.3% to 1,193.40 and USD/SGD was down 0.1% at 1.3532, while AUD/USD gained 0.3% to 0.7329.

METALS

Gold nudged higher in early Asian trade. The precious metal appeared to be focusing on the U.S. bond market, following its climb after Friday's nonfarm payrolls report, Pepperstone said. If real rates decline this week, gold should break above $1,780/oz. But, if bond markets sell off, nominal rates outpace inflation expectations and real rates rise, gold will likely fall through bids between $1,755/oz and $1,744/oz for a possible move toward the Sept. 29 low of $1,721/oz, Pepperstone said. Spot gold was up 0.1% at $1,759.11/oz.

OIL SUMMARY

Oil rose in early Asia trade, and could stay underpinned by robust demand and constrained supply. Oil prices remain supported by strong demand from some energy consumers who can use oil as an alternative to natural gas as well as by restrained oil supply from OPEC+, NAB said. Front-month WTI crude oil futures were 1.5% higher at $80.53/bbl. Front- month Brent crude oil futures were 1.1% higher at $83.32/bbl.

TOP HEADLINES
Investors Watch for Rising Costs in Earnings This Week
Soaring Energy Prices Raise Concerns About U.S. Inflation, Economy
U.S.-China Trade Talks Take Early Steps
Global Supply-Chain Woes Escalate, Threatening Economic Recovery
Sharp Rise Brings Treasury Yields Near Spring Highs
Tense Debt-Ceiling Vote Sets Stage for Tougher Fight
Justice Department Makes Quiet Push on Antitrust Enforcement
U.S. Job Growth Falls to Slowest Pace of Year
Reliance Industries Buys Norwegian Solar Cells Maker
Southwest Airlines Cancels Over 1,800 Flights
Disney Meets Roadblocks to Movie Releases in China
Hasbro CEO Takes Medical Leave
Lenovo Withdraws Shanghai Listing Plan
Twitch Streamer Earnings Increase for Top Gamers
Apple Filing Notice of Appeal in Epic Antitrust Case



  (END) Dow Jones Newswires
  10-10-21 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.