EQUITIES

Stocks in Asia edged higher on Monday as the final trading week of 2020 kicked off. The Japanese Nikkei 225 added 0.53%, leading the Asian markets. The Singapore’s Straits Times index rose 0.18%, and the Australia’s S&P/ASX 200 0.33% higher, and the South Korea’s KOSPI gains 0.34%. The Shanghai Composite added 0.10%, while the Hong Kong’s Hang Seng index slipped marginally at -0.04%.

Markets in Australia and New Zealand are closed on Monday for a holiday.

OIL

Oil prices slipped as a new COVID-19 strain raised the risk of more lockdown measures. Though, the long-awaited U.S. stimulus bill that signed earlier today by President Trump may give some hopes for economic recovery. The Brent crude futures traded to $51.14 a barrel, while U.S. crude at $48.19.

On Thursday, Brent closed at $51.29 per barrel, while WTI futures ended at $48.23 per barrel.

CURRENCIES

The dollar index was little changed on Monday at 90.15, following a three-day slide.

The Aussie was little changed at $0.7599. The offshore yuan was at 6.5196 per dollar, down 0.1%.

Bitcoin extended gains over the weekend to reach a new high of $28,377.94 before stepping back to $26,457.32, bringing the total value of the cryptocurrency in circulation to over $500 billion.

GOLD

Gold headed for the highest close in seven weeks after President Trump signed the coronavirus stimulus package, trading at $1,895.40 per ounce, while added to around $1,898.70 per ounce for gold futures. Previously closed at $1,878.70 and $1,883.20, respectively.

Silver trading at $26.60, platinum trading at $1,033.00 and palladium trading at $2,246.00.

ECONOMIC OUTLOOK

The main index of Asian-Pacific stocks rose in the mid-morning today in line with regional gains as U.S. President Donald Trump signed into law a $2.3 trillion pandemic aid and spending package. The rollouts of COVID-19 vaccines are also bolstering hopes of economic recovery next year.

The combined pandemic relief and funding bill were approved to avoid the start of a partial U.S. government shutdown, of which the President refused to sign before.

Japan November factory output growth stalls after rising for five months.

Profits at Chinese industrial firms in November rose 15.5% YoY, according to data released by the country’s National Bureau of Statistics over the weekend.

Britain is set to sign a free trade deal with Turkey this week, the first since PM Johnson secured a new trade agreement with the EU.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 80.763 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.764 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 103.796 and 103.982.

- Support line of 103.196 and 103.010.

Commentary/ Reason:

- The dollar was lower versus the yen to 103.504 on Monday, down 0.16%.

- The $900 billion aid package passed by President Trump improved investor sentiment and curbed the safe-haven currencies.

- Rally in Asian stocks of the day also factored into the tone.

- Meanwhile, on BoJ’s summary of the Dec. 17 to 18 meeting released Monday, policymakers at Japan’s central were divided on how far they should go in examining yield curve control with some calling for a comprehensive review of the framework.