EQUITIES
Asia-Pacific markets were higher on Tuesday. Hong Kong’s Hang Seng index and the South Korea’s KOSPI were among the region’s biggest gainers as it jumped 3.10%, and 2.75%, respectively. The Nikkei 225 added 1.48%, the Singapore’s Straits Times index advanced 0.45%, the Australia’s S&P/ASX up 1.19%, and the India’s S&P BSE Sensex index 0.93% higher.
Markets in the U.S. are closed on Monday for a Martin Luther King Day holiday.
OIL
Oil little changed as traders weighting between government stimulus and oil demand optimism to the coronavirus fears and stronger dollar. The Brent crude futures traded to $54.98 a barrel, while U.S. crude at $52.25.
Front-month February WTI futures expire on Wednesday.
On Friday, the Brent closed at $54.75 per barrel, while WTI futures ended at $52.25 per barrel.
CURRENCIES
The U.S. dollar strengthened for a fourth consecutive day on Tuesday to a 4-week high. The dollar index last at 90.684.
The Australian dollar changed hands at $0.7710, off levels above $0.775 seen late last week. The New Zealand dollar firmer at $0.7132.
GOLD
Gold steadied at $1,837.30 an ounce after briefly reaching a 6-week low of $1,809.90 overnight, while slipped around $1,836.30 per ounce for gold futures. Previously closed at $1,837.40 and $1,829.90, respectively.
Silver trading at $25.15, platinum trading at $1,088.00 and palladium trading at $2,260.00.
ECONOMIC OUTLOOK
Asian equities pushed higher on Tuesday as investors wagered China’s economic strength would help underpin growth regionally. U.S. bond yields also ticked up as investors awaited comments from Treasury Secretary nominee Janet Yellen on U.S. stimulus and the dollar.
Investors also are watching out for U.S. President-elect Biden’s inauguration speech on Wednesday for details on the country’s $1.9 trillion aid package. Biden’s inauguration on Wednesday expected to spur some buying interests going forward.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 95.543 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.039 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 104.323 and 104.570.
- Support line of 103.526 and 103.280.
Commentary/ Reason:
U.S. dollar edged higher on the yen at 103.975, added around 0.30% on the day.
Investors await remarks from U.S. President-elect Joe Biden’s nominee for Treasury secretary, Janet Yellen. Yellen is expected to make clear that the U.S. does not seek a weaker dollar and does not manipulate the currency.
