Indian morning briefing: Asian markets mostly up as 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 came out of its September slump with its biggest two-day rally in more than six months, supported by growing investor confidence that the economy can withstand the end of pandemic stimulus and unrest in the Chinese real estate markets.

The blue chip index added 506.50 points, or 1.5%, to 34,764.82 in its biggest one-day rise since July. The S&P 500 gained 53.34 points, or 1.2%, to close at 4,448.98, while the Nasdaq Composite Index added 155.40, or 1%, at 15,052.24 points. All three indices are now higher over the week.

 
 
ASIAN STOCKS 

Japanese stocks were broadly higher, driven by particularly strong gains among shippers and steelmakers, as concerns eased somewhat over the Chinese real estate sector. Investors focused on any development regarding China Evergrande Group as well as the election of a leader of the ruling party in Japan. The Nikkei Stock Average rose 1.9% to 30,190.92.

South Korea’s benchmark Kospi followed Wall Street higher at the start of trading, supported by the rebound in steelmakers. The index gained 0.2% to 3,132.59. Shipbuilding company Hyundai Heavy Industries Co., which had a strong business start last week, continued to weaken after Thursday’s 11% drop. The stock was down 0.8% for the last time. The Samsung Electronics heavyweight index slipped 0.3%.

Hong Kong stocks rose at the start of Asian trading as investors seemed to ignore the risk of Evergrande, according to IG. The benchmark Hang Seng index was 0.2% higher at 24,556.71 while the Hang Seng Tech index was stable at 6,300.47. Contagion risks were still present, but the recent injection of liquidity by China and local governments preparing for a potential drop in Evergrande seems to indicate the authorities’ intention to mitigate economic risks, IG said. This helps calm investor sentiment, he said. China Evergrande was down 4.9%.

Chinese stocks are mixed at the start of trading, as losses at coal miners and commodity companies outweigh gains at some liquor makers. The recent rally by coal companies falters as authorities step up efforts to stabilize prices, with Yanzhou Coal falling 6.0% and China Shenhua Energy 4.3%. Baoshan Iron & Steel loses 1.9% and CITIC Pacific Special Steel loses 2.4%. Among the winners, index heavyweight Kweichow Moutai added 1.8% and Wuliangye Yibin gained 1.3%. The Shanghai Composite Index fell 0.2% to 3635.85 and the Shenzhen Composite Index weakened 0.4%, although the ChiNext price index was 0.5% higher.

FOREX 

The ringgit could strengthen further as the US dollar retreated amid a resumption of risk appetite after the recent FOMC meeting, AmBank Research said. The unexpected jump in the number of new jobless claims in the United States last week further contributed to the greenback’s bearish movement. AmBank expected the ringgit to trade between 4.1624 and 4.1702 against the US dollar on Friday, with resistance stuck at 4.1873 and 4.1957. USD / MYR was little changed at 4.1805.

METALS 

Gold was higher at the start of Asian trading, with investors ignoring signals that the U.S. Federal Reserve would start to scale back its asset-buying activity and possibly raise interest rates, Oanda said. “It’s pretty impressive how relaxed investors are in the face of the situation,” Oanda said. Even so, the Fed’s intention to wane should weigh on the precious metal, with Oanda expecting the precious metal to test the $ 1,740 / oz level soon. Spot gold was up 0.3% to $ 1,748.99 / oz.

OIL SUMMARY 

Oil was higher during the Asian session. Demand for crude remains lukewarm, weighed down by the slowdown in air travel, Marex said. “Demand from the airline industry has slowed 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 recorded a net drop of 882,390 kiloliters for the week of Sept. 12-18, compared to the previous week, according to data from the Petroleum Association of Japan. First month Brent rose 0.5% to $ 77.64 / bbl and first month WTI gained 0.4% to $ 73.59 / bbl.

 
 
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(END) Dow Jones Newswires

September 23, 2021 11:15 p.m. ET (3:15 a.m. GMT)

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