Indian Morning Briefing: Mixed Asian Markets; China May Caixin manufacturing PMI at 48.1

DJIA         32990.12  -222.84   -0.67% 
Nasdaq       12081.39   -49.74   -0.41% 
S&P 500       4132.15   -26.09   -0.63% 
FTSE 100      7607.66     7.60    0.10% 
Nikkei Stock 27456.11   176.31    0.65% 
Hang Seng    21341.49   -73.71   -0.34% 
Kospi         CLOSED 
SGX Nifty*   16531.50   -28.5    -0.17% 
*June contract 
USD/JPY  129.05-06   +0.29% 
Range    129.19   128.65 
EUR/USD  1.0719-22   -0.13% 
Range    1.0744   1.0709 
CBOT Wheat July $10.874 per bushel 
Spot Gold    $1,834.70/oz  -0.1% 
Nymex Crude (NY) $115.36   $0.29 

US stocks fell on Tuesday, ending the month on a pessimistic note after last week’s rally.

The S&P 500 fell 26.09 points, or 0.6%, to close at 4132.15, resuming a bearish trajectory after breaking a seven-week losing streak last week.

The Dow Jones Industrial Average fell 222.84 on Tuesday, or 0.7%, to 32,990.12 in the first session of the week after markets reopened after the Memorial Day holiday. The S&P and Dow were roughly flat for the month.

The Nasdaq Composite fell 49.74, or 0.4%, to 12,081.39. The tech-focused index fell 2.1% in May.


Japanese stocks were higher in morning trading, driven by gains in financials and auto stocks as the yen weakened and US Treasury yields rose overnight. Nissan Motor rose 4.8% and Dai-ichi Life Holdings 2.4%. USD/JPY stood at 128.88, up sharply from 127.89 at Tokyo’s close on Tuesday. Investors were focused on developments in the sanctions on Russia and movements in crude prices, bond yields and the yen. The Nikkei Stock Average rose 0.3% to 27,355.70.

Hong Kong shares were lower in early trading, with the benchmark Hang Seng index down 0.5% to 21309.44, following declines in US equity markets. “General sentiments in the region may remain mixed with the pessimistic mood on Wall Street,” said IG market strategist Yeap Jun Rong. However, “some positive moves in US equity futures…could help limit losses for today’s session,” he added. The declines were widespread, led by CSPC Pharmaceutical’s 4.6% drop, followed by NetEase and Techtronic Industries which were down 3.9% and 2.4%, respectively. The Hang Seng TECH index fell 1.3% to 4426.67.

Chinese stocks were weaker at the start of trade, weakening from a recent uptrend as losses in the energy and non-ferrous metals sectors offset gains in auto stocks. PetroChina lost 1.8%, Cnooc was down 1.9% and Sinopec was down 0.9%. Zijin Mining fell 1.2%, Ganfeng Lithium fell 2.0% and Aluminum Corp. of China fell 1.9%. Automakers were broadly up, with Great Wall Motor and SAIC Motor up more than 2% each and Guangzhou Automobile Group up 4.5%. The Shanghai Composite Index fell 0.3% to 3177.91, while the Shenzhen Composite Index and the ChiNext Price Index each fell 0.2%.

Markets in South Korea are closed on Wednesday for a public holiday.


The JPY weakened against the G-10 and Asian currencies in the Asian morning session on the prospect that the BOJ will maintain its accommodative monetary policy, while central banks in some other parts of the world tighten monetary policy. This outlook was bolstered by comments this morning from BOJ Deputy Governor Wakatabe, who said there was a need to continue monetary easing patiently and that the central bank should not rule out the possibility of further easing. additional. USD/JPY rose 0.3% to 129.12, AUD/JPY gained 0.4% to 92.71 and SGD/JPY gained 0.2% to 94.14.


Gold fell slightly in early Asian trading as US Treasury yields rose and the greenback strengthened. The earlier rally in bullion prices “remains vulnerable to yields heading north again after a period of respite,” Craig Erlam, senior market analyst at Oanda, said in a note. “Gold remains choppy…and a bit lower on the day despite the risk averse trading we’re seeing,” he said. Spot gold was recently down 0.1% at $1,834.70 per troy ounce.


Crude oil benchmarks were higher at the start of Asian trading after the EU agreed to a sanctions package that includes a ban on Russian oil imports by sea. Even if pipeline oil were exempt from the ban, the sanctions would still cover more than two-thirds of Russia’s oil imports to Europe, ANZ analysts said in a note. That said, oil prices could face downward pressure as OPEC+ weighs exonerating Russia from oil production targets, which could drive other members such as Saudi Arabia and the United Arab Emirates united to pump more crude, analysts said. First-month Brent rose 0.7% to $116.36/bbl; WTI gained 0.5% to $115.28/bbl.

OPEC Weighs Suspending Russia From Oil-Production Deal 
EU Sets Harshest Russian Sanctions, Targeting Oil and Insurance 
China Manufacturing Sector Deteriorated at Softer Pace in May 
Fed's Bostic Says Idea of September Pause Not Tied to Any Looming Market Rescue 
BOJ Deputy Gov Calls for Fiscal Support to Ease Burden of Energy Inflation 
Biden, Powell Meet With Inflation at Its Highest in 40 Years 
Russia Extends Control Over Key Ukraine City as U.S. Plans to Boost Kyiv's Firepower 
Australia's Economy Grows Strongly in First Quarter, But Outlook Appears Bumpier 
Australian Home Prices Post First Fall Since September 2020 
Wells Fargo Told by Senator to Fix Its Risk-Management Practices 
Salesforce Sales Jump 24% 
HP Lifts Earnings Outlook Despite Supply-Chain Disruptions 
Supreme Court Gives Tech Industry Reprieve From Texas Social-Media Law 
U.K. Government Looks to Limit Dominance of Big Four Audit Firms 
Robinhood Nearing Settlement Over Trading Outage 
Origin Withdraws Earnings Guidance on Energy Markets Woes 
Spirit Airlines Shareholders Urged to Reject Frontier Deal 
Deutsche Bank, DWS Offices in Frankfurt Searched Over Greenwashing Claims 
Cracks Show in Western Front Against Russia's War in Ukraine 

(END) Dow Jones Newswire

May 31, 2022 11:17 p.m. ET (03:17 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

Marjorie N. McClure