Indian morning briefing: Asian markets mixed with US non-farm payroll data

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GLOBAL MARKETS 
DJIA         35064.25  271.58   0.78% 
Nasdaq       14895.12  114.58   0.78% 
S&P 500       4429.10   26.44   0.60% 
FTSE 100      7120.43   -3.43  -0.05% 
Nikkei Stock 27760.34   32.22   0.12% 
Hang Seng    26198.42   -6.27  -0.02% 
Kospi         3268.50   -7.63  -0.23% 
SGX Nifty*   16326.00   15.5    0.10% 
*August contract 
 
USD/JPY  109.86-87   +0.08% 
Range    109.89   109.75 
EUR/USD  1.1819-22   -0.12% 
Range    1.1838   1.1820 
 
CBOT Wheat Sept $7.126 per bushel 
Spot Gold      $1,800.81   0.2% 
Nymex Crude (NY)  $69.10  $0.95 
 
 
U.S. STOCKS 

Stocks broadly rebounded on Thursday, as shares of banks and tech and travel companies rose.

The S&P 500 gained 26.44 points, or 0.6%, to close at 4,429.10, rebounding after the broad market index closed 0.5% lower on Wednesday. The Dow Jones Industrial Average added 271.58 points, or 0.8%, to end at 35,064.25.

The tech-rich Nasdaq Composite rose 114.58 points, or 0.8%, to 14,895.12.

The S&P 500 and the Nasdaq Composite both finished at all-time highs, with the broad benchmark registering its 43rd year-end record. The Nasdaq Composite hit 27 records in 2021. The Dow Jones is hovering just 0.2% below its July 26 closing high.

 
 
ASIAN STOCKS 

Japan’s Nikkei Stock Average rose 0.3% to 27,810.74, led by gains in e-stocks as hopes continue of a recovery in earnings. Olympus Corp. rose 6.0% after boosting full year revenue and net profit outlook. Meanwhile, Nintendo was down 7.6% after first quarter net profit fell 13% year on year. The benefits and trends of Covid-19 infection were being watched closely.

South Korea’s benchmark Kospi edged up 0.1% to 3,278.52 in early trading, led by travel and banking stocks. Sentiment was supported by new hopes for an economic recovery after data showed the country had recorded a current account surplus for 14 consecutive months thanks to strong exports. Slightly more subdued concerns about the Delta variant of Covid-19 also helped fuel sentiment. KakaoBank jumped 20% on its first day of trading due to strong demand for digital bank shares.

Hong Kong stocks fell at the start of trading, as losses from real estate developers weigh in. The benchmark Hang Seng index fell 0.6% to 26,072.12, while the Hang Seng TECH index was down 0.2%. The biggest loser was China Mengniu Dairy, which was down 3.6%. Automaker BYD was the biggest winner, up 3.7%.

Chinese stocks fell amid concerns over the spread of the Covid-19 Delta variant in the country. Concerns about regulatory crackdown by Chinese authorities are also expected to persist, with the latest state media reports targeting the spirits and e-cigarette industries, IG said. Meanwhile, US-China trade relations are also said to be at the center of concern, following news that US business groups have called on President Biden to resume trade talks with China. . The Shanghai Composite Index was down 0.3% to 3,457.41 and the Shenzhen Composite Index was down 0.3% to 2,439.29. The ChiNext price index – a measure for emerging industries and startups – fell 0.9% to 3,500.39.

FOREX 

Most Asian currencies were weaker against the US dollar before the release of the US Non-Farm Wage Report, due later in World Day. Following hawkish comments from Fed Vice President Clarida this week, it is certain that this is an important jobs report that has real meaning, Pepperstone said. Therefore, a reading above one million jobs that pushes the unemployment rate much lower on a good participation rate should cause bonds to fall sharply and the US dollar to actually rise, Pepperstone added. USD / SGD rose 0.1% to 1.3519 and USD / JPY also rose 0.1% to 109.87 while USD / KRW was little changed at 1,142.81.

METALS 

Gold fell early in Asian trading after U.S. Treasury yields surged overnight from lows not seen since February. The upcoming U.S. non-farm payroll report would likely be the primary driver of gold’s short-term direction, OCBC said. “A stronger than expected employment report could send gold below the $ 1,800 support due to heightened expectations of an earlier rate hike cycle,” he added. Spot gold was down 0.2% to $ 1,800.81 / oz.

OIL SUMMARY 

Oil prices fell at the start of Asian trade, after rising overnight on U.S. trade data which showed the country’s crude exports improved in June. Demand prospects could be weighed down in the near term amid concerns over the Covid-19 Delta variant which has spread to 15 provinces in China, Oanda said. China is one of the biggest importers of oil. “Chinese vaccines are less effective than mRNA vaccines and that could mean slower reopening,” Oanda said. He expected WTI crude to consolidate in a trading range of $ 67 / bbl to $ 71 / bbl for now. First-month WTI crude oil futures and Brent were each down 0.3% to $ 68.90 / bbl and $ 71.08 / bbl, respectively.

 
 
TOP HEADLINES 
 
Business Groups Call on Biden to Restart Trade Talks With China 
CBO Estimates Infrastructure Bill Would Add $256 Billion to Deficits 
China's Corporate Crackdown Is Just Getting Started. Signs Point to More Tumult Ahead. 
China Telecom Plans to Raise More Than $7 Billion in Shanghai Offering 
RBA Debated Suspending QE Taper; Monitoring Covid Crisis 
EU Takes Another Step to Harmonize Anti-Money-Laundering Rules 
Joe Manchin Says Fed Should Reverse Easy-Money Policies 
Bank of England Leaves Interest Rate Unchanged Amid Pandemic Uncertainty 
U.K. Retail Store Footfall at Standstill in July for Third Month 
Novavax Delays Seeking U.S. Regulatory Approval for Covid-19 Vaccine 
FDA Covid-19 Vaccine Booster Plan Could Be Ready Within Weeks 
Covid-19 Vaccination Rates Rise Where Delta Variant Is Spreading 
Zynga Warns Pandemic Lift Is Ending for Videogame Companies 
Robinhood Stock Drops After News of Early Investors Set to Sell Shares 
News Corp's Fourth-Quarter Revenue Rises 
KakaoBank Shares Surge in South Korea Trading Debut 
WPP Raises Revenue Forecast as Clients Boost Digital Spending 
AIG Swings to Profit on Private-Equity Investments, Premium-Rate Increases 
Apple Plans to Have iPhones Detect Child Pornography, Fueling Privacy Debate 
Amazon Delays Return to Office to 2022 Amid Renewed Covid-19 Surge 
BHP Group Approves $800 Million in Capital Expenditures for Oil Projects in U.S., Mexico 
U.S. Investor Michael Calvey Found Guilty of Embezzlement by Russian Court 
 
 

(END) Dow Jones Newswires

August 05, 2021 11:15 p.m. ET (3:15 a.m. GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.


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