Indian Morning Briefing: Asian Markets Mostly Higher

GLOBAL MARKETS
DJIA         35457.31   198.70   0.56%
Nasdaq       15129.09   107.28   0.71%
S&P 500       4519.63    33.17   0.74%
FTSE 100      7217.53    13.70   0.19%
Nikkei Stock 29391.19   175.67   0.60%
Hang Seng    25956.72   169.51   0.66%
Kospi         3022.42    -6.62  -0.22%
SGX Nifty*   18450.00    23.5    0.13%
*Oct contract

USD/JPY  114.54-55   +0.17%
Range    114.69   114.35
EUR/USD  1.1637-40   +0.03%
Range    1.1650   1.1628

CBOT Wheat Dec $7.360 per bushel
Spot Gold    $1,772.62/oz   0.2%
Nymex Crude (NY) $82.89    $0.45


U.S. STOCKS

The S&P 500 notched its highest close in six weeks as investors parsed earnings reports to see how companies are managing inflation and supply-chain woes.

The S&P 500 gained 33.17 points, or 0.7%, to 4519.63, off 0.4% from its record hit in early September. The Dow Jones Industrial Average added 198.70 points, or 0.6% to 35457.31, its highest close in two months. The tech-heavy Nasdaq Composite rose 107.28 points, or 0.7%, to 15129.09.

ASIAN STOCKS

Japanese stocks were higher, led by gains in brokerage and electronics stocks, amid hopes for an earnings recovery and a weaker yen. USD/JPY rose to 114.65, its highest level since November 2017, compared with 114.11 as of Tuesday's Tokyo stock market close. Policy-related developments were being closely watched ahead of Japan's lower-house election later this month. The Nikkei Stock Average was up 0.7% at 29416.23.

South Korea's Kospi rose 0.3% to 3037.93 in early trade, tracking Wall Street's gains overnight. Financial, biotech and internet stocks led the rise, as investors await Korean firms to start releasing their 3Q earnings reports later this week. Internet group Naver rises 1.8% ahead of its 3Q earnings on Thursday. LG Chem added 2.2%, continuing to regain ground from recent losses caused by GM's additional recall of LG-supplied EV batteries.

Hong Kong's Hang Seng Index opened 1.1% higher at 26074.20, tracking the positive performance of U.S. stocks, which were boosted by strong earnings. Technology stocks were leading gains. Alibaba Group jumped 4.7%, Alibaba Health Information Technology added 2.2% and Tencent Holdings rose 1.8%.

Chinese shares were mixed in early trade, as coal companies declined while banks gain. Coal producers fell after comments from China's NDRC suggested the country will implement measures to curb high coal prices, IG said. The Shanghai Composite Index fell 0.3% to 3581.66, the Shenzhen Composite Index declined 0.1% to 2419.99 and the ChiNext Price Index was 0.2% higher at 3304.08. FOREX

Asian currencies were mixed against USD, but may strengthen amid risk-on mood spurred by gains in most regional equity markets. Healthier risk conditions and the repricing of expectations for central banks' monetary policies worldwide could send USD lower in coming days, although any losses might ultimately prove modest, Westpac said. The ECB is likely to underscore its dovish guidance next week, while the Fed is expected to announce QE tapering at its Nov. 2-3 meeting, a backdrop that should underpin USD, Westpac added. USD/KRW rose 0.2% to 1,177.84 while USD/SGD was little changed at 1.3443 and AUD/USD gained 0.1% to 0.7484. METALS

Gold edged higher in the morning Asian session. Trading in the precious metal could stay choppy as investor expectations on the Fed rate-increase timing would be dictated over next few inflation reports, Oanda said. Complicating gold's short-term outlook was the inability of U.S. lawmakers to get President Biden's infrastructure deal and economic package done, Oanda added. Spot gold was up 0.2% at $1,772.62/oz. OIL SUMMARY

Oil was lower in the early Asian session on possible profit-taking. Given the relentless winning streak in oil prices, they are ripe for significant rounds of profit-taking, Oanda said. While WTI crude oil seems ripe for a pullback, any declines may be limited as the short-term outlook remains very bullish, Oanda added. Front-month WTI crude oil futures were down 0.1% at $82.85/bbl, while Brent crude oil futures were 0.2% lower at $84.93/bbl.

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  (END) Dow Jones Newswires
  10-19-21 2315ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

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