EQUITIES
Asia-Pacific markets were mixed on Tuesday. The South Korea’s KOSPI led the gain, jumped 1.21% following its return from a Monday holiday, followed by the India’s S&P BSE Sensex index that rose 1.09%, and the Singapore’s Straits Times index at 0.26% higher.
Shares in mainland China were lower, with the Shanghai composite down -0.99% while the Hong Kong’s Hang Seng index dipped -0.66%. In Japan, the Nikkei 225 declined -0.80%, while the Australia’s S&P/ASX 200 at -0.21% lower.
Overnight, the Dow Jones Industrial Average soared 603.14 points to close at 31,535.51 while the S&P 500 advanced 2.38% to finish its trading day at 3,901.82. The Nasdaq Composite jumped 3.01% to close at 13,588.83.
OIL
Oil prices were on the defensive on fears of slowing Chinese energy consumption and ahead of a key OPEC+ meeting this week that may return more supply back to the market. The Brent crude futures traded to $62.97 per barrel, while the U.S. crude futures at $59.93 per barrel.
Overnight, the Brent close at $63.69, while WTI futures ended lower at $60.64 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 91.21 as it held on to gains from late February when it rose from levels below 90.
Benchmark U.S. Treasury yields eased further from a 1-year high hit last week as Fed officials continued to downplay runaway inflation concerns.
The Australian dollar changed hands at $0.7757 following the central bank decision to maintain its current policy settings. The New Zealand dollar weakened 0.30% to $0.7243.
Bitcoin rose above $49,000, with Citi saying the most popular cryptocurrency was at a "tipping point" and could become the preferred currency for international trade.
GOLD
Gold edged lower on firmer dollar, traded at $1,713.80 an ounce, while slipped around $1,712.30 per ounce for gold futures. Previously closed at $1,724.80 and $1,723.00, respectively.
Silver at $26.12 an ounce. Platinum at $1,171.00, while palladium at $2,266.00.
ECONOMIC OUTLOOK
Stocks in Asia-Pacific traded mixed on Tuesday following rather solid performance overnight for shares on Wall Street. The moves came as the benchmark 10-year U.S. Treasury note yield declined, following a surge last week. The yield on the 10-year was last at 1.417%.
U.S. manufacturing activity increased to a 3-year high in February amid a surge in new orders.
The ECB slowed its net purchases of debt last week even as borrowing costs jumped in the financial markets, casting a shadow over a nascent recovery in the pandemic-stricken euro zone economy.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 114.417 million, recording more than 2.537 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 107.019 and 107.229.
- Support line of 106.340 and 106.131.
Commentary/ Reason:
The dollar rose to 106.824 yen on Tuesday, its highest since late August.
USD/JPY climbed to a 6-month high as the yen weakened on speculation the BoJ may soon act to stem the recent surge in bond yields. BoJ officials said on Monday the Bank is prepared to stem the risk of Japan's benchmark bond yield rising too much ahead of the Bank’s policy review later this month. Current BoJ policy is to keep the 10-year yield within a 0.20 percentage point range on either side of zero.
Also undercutting the yen was the sharp rally in stocks that reduced the safe-haven demand for the yen.
The progression of dollar whoever, capped as Japan's COVID-19 state of emergency was lifted in six prefectures outside the Tokyo region.
