Indian Morning Briefing: Asian Markets Mostly Lower After Overnight Fall on Wall Street

GLOBAL MARKETS
DJIA              34496.06   -250.19    -0.72%
Nasdaq            14486.20    -93.34    -0.64%
S&P 500            4361.19    -30.15    -0.69%
FTSE 100           7146.85     51.30     0.72%
Nikkei Stock      28278.31   -219.89    -0.77%
Hang Seng         25128.97   -196.12    -0.77%
Kospi              2916.95    -39.35    -1.33%
SGX Nifty*        17876.50     -84.5    -0.47%
*Oct contract

USD/JPY     113.28-29  -0.04%
Range       113.49   113.25
EUR/USD     1.1557-60  +0.03%
Range       1.1559   1.1547

CBOT Wheat  Dec $7.316 per bushel
Spot Gold  $1,755.07/oz  0.1%
Nymex Crude (NY) $80.45 $1.10


US STOCKS

U.S. stocks fell, while oil prices rallied.

The S&P 500 retreated 0.7%, while the Dow Jones Industrial Average declined 0.7%. The technology-heavy Nasdaq Composite slipped 0.6%. Stocks rose in the morning, but later turned lower as investors fretted about the combination of inflation and slowing growth. Inflation has proved stickier than expected, brought on by supply-chain disruptions, labor shortages and surging energy prices.

ASIAN STOCKS

Japan's Nikkei Stock Average was down 0.4% at 28378.31 as falls in tech, airline and retail stocks offset gains in energy and auto stocks. Rising crude oil prices, as well as any economic policy steps from new Japanese Prime Minister Fumio Kishida, were in focus.

South Korea's Kospi was 1.2% lower at 2921.72 in early trade, tracking an overnight decline on Wall Street, haunted by fears of rising oil prices and earnings worries. Investors were refraining from big bets ahead of the Bank of Korea's rate-setting meeting later in the day, with foreigners remaining net sellers.

Hong Kong's Hang Seng Index fell 1.5% to 24936.53 in early trade, tracking losses on Wall Street overnight. Tech stocks retreated, following Monday's strong performance, with Alibaba Group leading losses, down 4.7%, while Tencent and Meituan each slipped 2.3%. The Hang Seng TECH Index dropped 2.7% to 6230.37. Chinese oil majors gained amid elevated oil prices.

Chinese stocks fell in early trade amid losses among miners and continued weakness in electricity providers. Turnover in the A-share market has decreased, with some selling pressure expected in the near term, China Fortune Securities said. The Shanghai Composite Index dropped 0.7% to 3567.84, the Shenzhen Composite Index declined 0.8% and the ChiNext Price Index was 0.7% lower.

FOREX

Most Asian currencies weakened against USD amid growing inflation concerns. Rising worries about whether inflation will be transitory have begun to appear, IG said. Recent strength in commodities prices, together with wage increases, seem to be fueling more persistent price pressures, challenging expectations that the Fed's tapering timeline may be postponed due to lackluster jobs gains, IG added. USD/KRW rose 0.3% to 1,199.56 and USD/SGD edged 0.1% higher to 1.3562, while AUD/USD was down 0.1% at 0.7336.

METALS

Gold edged higher in the Asian morning session, as markets awaited U.S. inflation data to be released this week. The precious metal could be forming a base as risks to the U.S. economic outlook continue to grow, Oanda said. Also, gold is beginning to attract some safe-haven flows, owing to factors such as supply-chain issues showing no major signs of easing, Oanda added. Spot gold was up 0.1% at $1,755.07/oz.

OIL SUMMARY

Oil fell in Asia morning trade, in a likely technical correction after U.S. oil futures on Monday settled above $80/ bbl for the first time in nearly seven years. Increasing tightness in the physical market is likely to put further upward pressure on crude-oil prices in 4Q, ANZ said. The bank has raised its short-term target for oil prices to $90.00/ bbl. Front-month WTI crude oil futures were down 0.4% at $80.19/bbl. Front-month Brent crude oil futures were down 0.4% at $83.32/bbl.

TOP HEADLINES
Oil Jumps Above $80, Turbocharged by Supply Shortages
Bank of Korea Holds Rate Steady as Expected
Xi Jinping Scrutinizes Chinese Financial Institutions' Ties With Private Firms
Investors Watch for Rising Costs in Earnings This Week
Analysis: Fed Down Two Hawks as Regional Bank Presidents Depart
Texas Governor Bans Covid-19 Vaccine Mandates for Employees
Shiite Cleric Sadr Emerges as Kingmaker After Iraq Election
India, China Strike Out in Talks to Ease Border Dispute
Afghan Interpreter Who Helped Rescue Biden in 2008 Escapes Afghanistan
Nobel Economics Prize Is Awarded to U.S.-Based Trio
California to Investigate Oil Spill
Amazon Rethinks Office Return Plans, Adding More Flexibility
Longtime Disney Studio Head to Depart
Hasbro Enters Holiday Season With CEO on Medical Leave
Southwest Airlines Cancels Hundreds of Flights After Weekend Disruption
Chevron Sets Out to Cut Carbon Emissions in Operations
KKR Co-CEOs Henry Kravis, George Roberts Step Down
Merck Asks FDA to Authorize Promising Covid-19 Pill



  (END) Dow Jones Newswires
  10-11-21 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.