Indian Morning Briefing: Asian Markets Decline

GLOBAL MARKETS
DJIA           35756.88     15.73     0.04%
Nasdaq         15235.71      9.01     0.06%
S&P 500         4574.79      8.31     0.18%
FTSE 100        7277.62     54.80     0.76%
Nikkei Stock   28929.82   -176.19    -0.61%
Hang Seng      25628.29   -409.98    -1.57%
Kospi           3026.47    -22.61    -0.74%
SGX Nifty*     18283.50    -50.0     -0.27%
*Oct contract

USD/JPY    114.03-04   -0.10
Range      114.22   114.03
EUR/USD    1.1598-601  +0.03
Range      1.1606   1.1591

CBOT Wheat Dec   $7.522 per bushel
Spot Gold  $1791.25/oz   -0.1%
Nymex Crude (NY)  $84.63      $0.87


US STOCKS

The S&P 500 and Dow Jones Industrial Average cruised to another pair of closing records after solid earnings and upbeat consumer data gave investors a fresh dose of economic optimism.

Both benchmarks advanced from Monday's record closes. The Dow Jones Industrial Average added less than 0.1%, while the S&P 500 gained 0.2%. The Nasdaq Composite finished less than 0.1% higher.

Earnings season so far has beaten investors' expectations and helped lift stocks out of a September slump. United Parcel Service powered both the Dow and the S&P 500 after the delivery company topped analysts' estimates.

Investors have been buoyed by strong figures from major banks, consumer companies and manufacturers. Jitters about the labor market and inflation have somewhat given way to optimism about a recovering economy.

Consumer confidence rose last month, halting a three-month decline, according to the Conference Board. The latest home-sales figures from the Commerce Department also highlighted an increase in purchases across the country, topping analysts' projections.

ASIAN STOCKS

Japan's Nikkei Stock Average was down 0.3% at 29007.20, dragged by falls in electronics stocks, as concerns continued about higher costs of fuel and raw materials. Investors are focusing on quarterly earnings as well as political developments ahead of Japan's lower-house election on Sunday.

South Korea's benchmark Kospi was 0.5% lower at 3033.96 in early trade, dragged by transport and financial stocks. As inflation fears still weigh on sentiment, stocks are wobbling as investors parse corporate earnings.

Hong Kong stocks were lower in morning trade, widening their opening losses. The benchmark Hang Seng Index was down 1.5% at 25656.43. Chinese tech giants led the downturn, following overnight weakness in the sector in the U.S. KGI Securities said the Asian city's equities may suffer some selling pressure today after a broad rebound earlier this month. The brokerage also points to recently muted southbound fund flows from mainland investors as another negative factor.

Chinese stocks fell in early trade, tracking broad declines among other Asian equities. The Shanghai Composite Index shed 0.5% to 3579.16, the Shenzhen Composite Index was down 0.5% at 2411.65, and the ChiNext Price Index--a measure for emerging industries and startups--was off 0.2% at 3322.45. Developments in China's property sector will likely remain in focus, following recent news that Chinese authorities are asking Evergrande's founder to use his personal wealth to repay debt, while another dollar bond deadline looms later this week, IG said. "This may come in as a warning shot to other property developers," IG added. FOREX

The WSJ Dollar Index edged up around 0.1%. "The dollar's been a bit of a mixed bag," Silicon Valley Bank senior FX trader Minh Trang told WSJ. He said focus this week has been on earnings, with tech earnings creating optimism and " you're seeing more of a risk-on sentiment." But there hasn't been much economic news or dollar movement. "Third-quarter GDP is coming up, and the expectation there is that there will be a slowdown in economic growth from 2Q," but that's baked into expectations, he said. METALS

Gold inched lower in early Asian trade, as a positive earnings season in the U.S. helped to boost risk appetite across markets, ANZ said. The bank, however, expects U.S. inflation concerns will become more persistent, which could in turn provide some support for gold. Spot gold was recently down 0.1% at $1,791.25/oz.

Copper declined in early Asian trade. The price of the metal is likely weighed by rising fears of a debt crisis affecting China's property sector after developer Modern Land missed a payment on a dollar bond, ANZ said. The bank said Beijing has signaled it isn't rushing to counteract the debt crisis with any stimulus. The three-month LME copper contract was down 0.2% at $9,773.50 a ton. OIL SUMMARY

Oil declined in Asian trading, pulling back from overnight gains that were supported by expectations for global supplies to remain tight. Investors will likely keep a close watch on upcoming talks between Iran and the European Union, which could eventually help revive a Iran nuclear deal, ANZ said. This comes ahead of a meeting of the OPEC+ alliance, where members will discuss whether to increase output by more than scheduled under the current supply agreement, the bank said. Front-month WTI crude oil and Brent crude each declined 0.3% to $84.37/bbl and $86.15/bbl, respectively.

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  (END) Dow Jones Newswires
  10-26-21 2315ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

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