EQUITIES
Asia-Pacific markets were mixed on Friday, with the South Korea’s KOSPI index leading the losses, losing about -1.64%, followed by the Nikkei 225 by -0.70%, and the Australia’s S&P/ASX by -0.48% lower.
Meanwhile, mainland Chinese stocks were higher in early trade; The Shanghai composite gained 0.23%, and Hong Kong’s Hang Seng index rose 0.28%. The Singapore’s Straits Times index gained 0.05, and the India’s S&P BSE Sensex index rose 0.64%.
Overnight on Wall Street, the Dow Jones Industrial Average rose 300.19 points, or 0.99%, to 30,603.36, the S&P 500 gained 36.61 points, or 0.98%, to 3,787.38 and the Nasdaq Composite added 66.56 points, or 0.5%, to 13,337.16.
OIL
Oil mixed on Friday on concerns of delays to vaccine rollouts and fresh travel curb. The Brent crude futures traded to $55.64 a barrel, while U.S. crude at $52.26.
The Brent March contract expiring on Friday.
On Thursday, the Brent closed at $55.34 per barrel, while WTI futures ended at $52.34 per barrel.
CURRENCIES
The U.S. currency has rebounded from 3-year lows touched earlier this month and up at 90.74 on Friday.
The Australian dollar changed hands at $0.7644 after falling below $0.762 yesterday. The New Zealand dollar slipped 0.20% to $0.7156. The Chinese yuan firmed slightly in offshore trade to 6.4715 per dollar.
Bitcoin edged higher, trading at $33,899, after surging more than 10% on Thursday.
GOLD
Safe-haven gold rose to $1,841.80 per ounce, while added around $1,844.00 per ounce for gold futures. Previously closed at $1,843.60 and $1,841.20, respectively.
Silver trading at $26.16, platinum trading at $1,061.00 and palladium trading at $2,270.00.
ECONOMIC OUTLOOK
Asian stocks look to recover on Friday after U.S. shares rallied and the dollar eased overnight, as fears of social media driven hedge fund selling subsided, and the U.S. earnings season got off to a strong start.
Although Asian stocks recuperated on Friday, the indexes still are headed for their steepest weekly loss in months.
U.S. economy contracted 3.5% in 2020, worst performance since WW2. In the Q4, GDP increased at a 4.0% annualized rate.
IMF says global debt likely reached 98% of economic output at the end of 2020 as governments poured in nearly US$14 trillion to battle the coronavirus pandemic, urging that fiscal support stay in place until recovery is firmly underway.
The U.S. Federal Reserve on Wednesday left its benchmark overnight interest rate near zero and pledged to continue injecting money into the economy through bond purchases.
In labour market, 847,000 more people filed jobless claims last week in the U.S., lower than the estimate.
China central bank injected 100 billion yuan into the financial system on Friday after a week of sucking liquidity which had put investors on edge as to whether the supportive policy environment could be shifting.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 101.409 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.188 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 104.518 and 104.659.
- Support line of 104.062 and 103.921.
Commentary/ Reason:
The dollar advanced 0.30% to 104.496 yen, after touching a new monthly high earlier today.
The greenback strengthening on demand for a safe haven currency. A sharp rally in stocks on Thursday reduced safe haven buying of the yen and pushed USD/JPY higher.
The U.S. Federal Reserve on Wednesday left its benchmark overnight interest rate near zero and pledged to continue injecting money into the economy through bond purchases.
Japan’s jobless rate held steady at 2.9% in December and the availability of jobs was unchanged from the previous month, while its industrial output extended declines, government data showed on Friday.
