Indian Morning Briefing : Asian Markets Mostly Lower After Wall Street's Tech-Driven Fall –

DJIA             36113.62   -176.70    -0.49% 
Nasdaq           14806.81   -381.58    -2.51% 
S&P 500           4659.03    -67.32    -1.42% 
FTSE 100          7563.85     12.13     0.16% 
Nikkei Stock     27956.98   -532.15    -1.87% 
Hang Seng        24296.53   -133.24    -0.55% 
Kospi             2924.76    -37.33    -1.26% 
SGX Nifty*       18239.00     -61.5    -0.34% 
*Jan contract 
USD/JPY    113.79-80  -0.33% 
Range      114.23   113.75 
EUR/USD    1.1464-67  +0.10% 
Range      1.1470   1.1452 
CBOT Wheat March $7.466 per bushel 
Spot Gold $1,820.13/oz -0.1% 
Nymex Crude (NY) $81.50 -$1.14 

The S&P 500 and Nasdaq Composite both fell as declines in technology shares weighed on the stock market.

The S&P 500 dropped 1.4%, while the tech-heavy Nasdaq Composite lost 2.5%. The Dow Jones Industrial Average fell 0.5%.

Technology stocks have come under pressure in the new year as government-bond yields have risen. Higher yields can reduce the appeal of the future earnings promised by many tech stocks. The S&P 500’s tech sector dropped 2.2% for the session, bringing its year-to-date losses to 5.2%.

The largest U.S. stocks helped pull the market lower, with Apple shares falling 1.5% and Microsoft shares sliding 3.8%. More economically sensitive parts of the stock market held up better, with the industrial sector of the S&P 500 gaining 0.3%.


Japanese stocks were lower in morning trade, dragged by falls in electronics and real-estate stocks, as the yen strengthened amid economic uncertainty over the Omicron variant. Investors were focusing on Covid-19 infection trends and the government’s countermeasures. The Nikkei Stock Average was down 1.9% at 27947.28.

South Korea’s Kospi declined 0.7% to 2940.47 in early trade, tracking Wall Street’s tech-driven fall overnight on Fed officials’ hawkish comments. Internet, biotech and energy stocks were lower. Investors largely remained on the sidelines ahead of the Bank of Korea’s rate decision later in the day.

Hong Kong’s Hang Seng Index was 1.1% lower at 24150.35, weighed by a sell-off in tech shares. KGI Securities expected profit-taking pressure to weigh on Hong Kong shares after Chinese internet stocks fell sharply in the U.S. ADR market. The Hang Seng Tech Index slid 3.1% to 5620.11.

Chinese stocks were mixed in early trade, with broad losses among coal miners, property developers and the energy sector. Soochow Securities said the market was on an overall weakening trend and Thursday’s declines weakened investor enthusiasm. The Shanghai Composite Index declined 0.8% to 3528.14, the Shenzhen Composite Index slipped 0.1% and the ChiNext Price Index edged 0.2% higher.


JPY strengthened against G-10 and Asian currencies, as hawkish comments from several Fed officials sparked risk aversion, boosting the safe-haven allure of the Japanese yen. Markets are turning nervous after Fed officials’ comments on the U.S. central bank’s focus to fight inflation aggressively, MUFG Bank said. However, there may be some resilience among regional currencies ahead, as fundamentals in Asia begin to improve and the Covid-19 situation becomes more controlled, MUFG Bank added. USD/JPY slipped 0.4% to 113.77, AUD/JPY dropped 0.5% to 82.72 and SGD/JPY was down 0.4% at 84.55.


Gold prices slipped despite sustained weakness in the U.S. dollar as high inflation provoked investor concern about more hawkish action from the Federal Reserve, ANZ said. Data this week showed a surge in inflation, and Fed officials have since warned that the central bank would have to hike rates up more aggressively this year if inflation stays high through the first half. Many analysts had been expecting the Fed to hike rates around three times this year, but the latest comments from officials suggest four increases are a possibility. Spot gold fell 0.1% to $1,820.13/oz.


Oil prices fell in early Asian trade as political pressure has been growing for the White House to lobby OPEC+ to make sure the group as a whole can hit their production targets amid supply disruptions, Oanda said. The short-term outlook for travel demand was also likely to be crimped by the spread of the Omicron variant, Oanda said, citing Delta CEO Ed Bastian who said he expects the rebound in travel to be delayed by 60 days. The front-month contract for WTI was down 0.4% to $81.67/bbl, while front-month Brent crude slipped 0.4% to $84.08/bbl.

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(END) Dow Jones Newswires

01-13-22 2215ET


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