Indian Morning Briefing: Asian Markets Mostly Lower; Focus on Earnings, Fed This Week – Morningstar

July 25, 2022 by No Comments

GLOBAL MARKETS 
DJIA         31899.29  -137.61  -0.43% 
Nasdaq       11834.11  -225.50  -1.87% 
S&P 500       3961.63   -37.32  -0.93% 
FTSE 100      7276.37     5.86   0.08% 
Nikkei Stock 27701.07  -213.59  -0.77% 
Hang Seng    20408.44  -200.70  -0.97% 
Kospi         2396.94     3.80   0.16% 
SGX Nifty*   16687.00   -38     -0.23% 
*July contract 
 
USD/JPY  136.18-19  +0.06% 
Range    136.61   135.91 
EUR/USD  1.0209-12  -0.05% 
Range    1.0222   1.0183 
 
CBOT Wheat Sept $7.590 per bushel 
Spot Gold    $1,724.36/oz  -0.1% 
Nymex Crude (NY) $94.66   -$1.69 
 
 
U.S. STOCKS 

U.S. stocks are set to open lower on Monday as a big week of economic data releases and earnings reports kicks off.

On Sunday night, Dow Jones Industrial Average futures lost 55 points, or 0.2%, while the S&P 500 futures lost 0.2%, and Nasdaq Composite futures slipped 0.1%.

Stocks slumped Friday, snapping a three-day winning streak, as some surprisingly weak quarterly updates from companies spooked investors.

The S&P 500 fell 37.32 points, or 0.9%, to 3961.63 a day after the broad benchmark index jumped 1%. The Dow Jones Industrial Average edged down 137.61 points, or 0.4%, to 31899.29, and the Nasdaq Composite declined 225.50 points, or 1.9%, to 11834.11. Despite Friday’s losses, all three indexes posted weekly gains.

With a 2.5% rise for the week, the S&P 500 capped its best week in a month.

 
 
ASIAN STOCKS 

Japanese stocks were lower, dragged by electronics and chemical stocks, as caution continues over higher costs of operations and their impact on corporate earnings. Yaskawa Electric declined 2.4% and Shin-Etsu Chemical was 2.6% lower. Earnings were in focus with Shin-Etsu, Canon Inc. and Nissan Motor set to announce their results this week. USD/JPY was at 136.47, down from 137.90 as of Friday’s Tokyo stock market close. The Nikkei Stock Average was 0.6% lower at 27737.48.

South Korea’s benchmark Kospi rose 0.4% to 2403.03 in early trade, led by gains in auto makers and car parts suppliers. Foreign investors were leading the gains. USD/KRW is at 1,311.70, down from Friday’s Seoul market close at 1,313.00. Hyundai Motor rose 2.9%, extending gains after its upbeat 2Q earnings last week. Its sister company Kia also gained 2.5%. Auto component suppliers Hanon Systems and Hyundai Mobis were up 3.4% and 2.5%, respectively. Meanwhile EV battery maker LG Energy Solution fell 2.2% as an IPO lock-up period for institutional investors was due to expire on Wednesday.

Hong Kong’s Hang Seng Index fell 0.4% to 20531.78 in morning trade amid persistent headwinds. Investor sentiment was likely to remain weak as U.S. and Europe continue to hike rates and as Chinese homebuyers refuse to repay mortgages for unfinished property projects, KGI Research analysts said in a note. Decliners include Sunny Optical Technology, down 2.3%, and Alibaba Group Holding, which fell 2.2%, and Sino Biopharmaceutical, which was off by 2.1%. Gainers include Henderson Land Development, which added 0.7%.

Chinese shares fell in early trade, extending Friday’s declines as losses by auto makers offset gains by property developers. Market confidence may take time to rebuild after recent big swings, Shanxi Securities said in a note. Aluminum Corp. of China advanced 3.5% after agreeing to acquire a larger stake in Yunnan Aluminum. Great Wall Motor and BYD Co. each lost more than 2%, while electric-car battery maker CATL dropped 1.1%. Among gainers, Poly Developments added 2.6% and Seazen Holdings increased 2.5%. The Shanghai Composite Index fell 0.2% to 3264.36, the Shenzhen Composite Index declined 0.2% and the ChiNext …….

Source: https://www.morningstar.com/news/dow-jones/202207242257/indian-morning-briefing-asian-markets-mostly-lower-focus-on-earnings-fed-this-week

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