EQUITIES
Asia-Pacific markets were higher on Tuesday, with the mainland Chinese stocks, the Shanghai composite leading the gains by 1.22% and the Hong Kong’s Hang Seng index at 0.39% higher. Nikkei 225 added about 0.09%, the Singapore’s Straits Times index advanced 0.16%, the KOSPI index rose 0.31%, and the India’s S&P BSE Sensex index was up 0.41%. Meanwhile, the Australia’s S&P/ASX slipped -0.70%.
Overnight, the Wall Street closed on fresh record highs as traders are optimistic of another stimulus relief package soon. The Dow Jones Industrial Average gained 238 points to almost the 31,400 mark whilst both the S&P 500 and Nasdaq climbed 0.7% and 1.0% respectively.
OIL
Oil hit 13-month highs, helped by rising optimism on improving demand. The Brent crude futures traded to $61.04 a barrel, while U.S. crude at $58.38.
On Monday, the Brent crude finally breached the $60 per barrel mark to close at $60.56 which is more than a 1-year high, while WTI futures ended at $57.97 per barrel. Both benchmarks were at the highest since January 2020.
CURRENCIES
The surging crude oil prices exerts downward pressure on dollar. The dollar index against a basket of six major currencies stood at 90.70.
The Australian dollar changed hands at $0.7727, above levels below $0.764 seen late last week, while the New Zealand added 0.5% to $0.7251.
Bitcoin soared to record levels above $47,000, building on a nearly 20% surge overnight, after Tesla Inc announced a $1.5 billion investment in the digital asset.
GOLD
Gold prices rose to a near 1-week high on Tuesday as the U.S. dollar faltered. The bullion rose to trade at $1,840.10 per ounce, while shed around $1,843.30 per ounce for gold futures. Previously closed at $1,830.40 and $1,834.20, respectively.
Silver trading at $27.51, while platinum trading at $1,176.00 and palladium trading at $2,270.00.
ECONOMIC OUTLOOK
Asian shares rally on Tuesday as investors are taking comfort from another overnight record-setting day on Wall Street, vaccine rollouts and signs of progress on stimulus bill.
Biden's $1.9 trillion COVID-19 relief package is expected to pass through Congress before March 15 even without Republican support.
Earnings season continues with companies including Honda Motor, Cisco Systems, Societe Generale and L’Oreal.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 106.471 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.325 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.886 and 106.438.
- Support line of 104.782 and 104.230.
Commentary/ Reason:
The yen was at 104.66 per dollar, added 0.33% to touch a 1-week high earlier today.
The dollar has been in retreat after a disappointing jobs data knocked the wind out of a 2-week rally.
A news of bitcoin rally also capped demand for the safe haven currency.
Apart from that, an expected massive fiscal spending, coupled with continued ultra-easy Federal Reserve monetary policy also dragging down the dollar.
Meanwhile, several positive economic data released for Japan had been supportive of the yen.
