EQUITIES
Asia-Pacific markets were higher on Monday, with the Nikkei 225 leading the gains, soared about 1.82%, followed by the India’s S&P BSE Sensex index that was up 1.42%. The mainland Chinese stocks, the Shanghai composite rose 1.06% and the Hong Kong’s Hang Seng index at 0.66% higher. The Australia’s S&P/ASX gains 0.59%, and the Singapore’s Straits Times index advanced 0.60%. The KOSPI index rose slipped to -0.36% lower.
OIL
Oil prices edged closer to touched $60 a barrel on hopes of the U.S. aid package and supply curbs by OPEC. The Brent crude futures traded to $59.98 a barrel, while U.S. crude at $57.47.
On Friday, the Brent closed at $59.34 per barrel, while WTI futures ended at $56.85 per barrel.
CURRENCIES
The dollar index against a basket of six major currencies stood at 91.04, after falling 0.6% on Friday.
The risk-sensitive Australian dollar held near a 1-week high at $0.7675, and the New Zealand dollar edged up to $0.7201.
The onshore yuan edged up slightly to 6.4592 per dollar, but trade is likely to be subdued before week-long Chinese New Year holidays beginning Thursday.
Taiwan's central bank on Sunday said it had banned Deutsche Bank, Citigroup Inc, ING, and Australia and New Zealand Banking Group Ltd (ANZ) from trading Taiwan dollar deliverable and non-deliverable forwards and suspended from trading the forex derivatives as part of a crackdown on currency speculation case. The Taiwan dollar is at its highest in more than 23 years against the US dollar.
GOLD
Gold prices inched lower on Monday, as Treasury yields moved higher and the U.S. dollar bounced up. The bullion slipped to trade at $1,812.50 per ounce, while shed around $1,811.10 per ounce for gold futures. Previously closed at $1,815.20 and $1,813.00, respectively.
Silver trading at $26.75, while platinum trading at $1,128.00 and palladium trading at $2,262.00.
ECONOMIC OUTLOOK
Asian shares hovered near record highs on Monday, with Nikkei and Topix hitting 30-year highs after most major benchmarks climbing to a record last week, as investors monitored comments from Janet Yellen pushing a stimulus bill, all the while monitoring signs of progress on the coronavirus front.
U.S. Treasury Secretary Yellen said on Sunday talk shows that the U.S. can return to full employment in 2022 if it enacts a robust enough relief package.
China's forex reserves fell slightly in January, to $3.211 trillion, official data showed on Sunday, likely due to valuation effects as the dollar posted a small gain against a basket of major currencies.
China’s State Administration for Market Regulation released Sunday new anti-monopoly guidelines that target internet platforms. Shares of Chinese tech giants Alibaba, Tencent and JD.com are watched.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 106.137 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.316 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.536 and 105.707.
- Support line of 105.194 and 105.023.
Commentary/ Reason:
The dollar was at 105.482 yen on Monday, having pulled back from a 4-month high reached on Friday, although still up 0.16% on the day.
USD/JPY moved higher as a rally in stocks undercut the safe-haven demand for the yen, while a wide U.S. budget and current account deficits capped gains in dollar.
