EQUITIES
Asia-Pacific markets traded higher on Friday, with some major regional markets such as Australia, Hong Kong, India, and Singapore are closed for Good Friday.
In Japan, the Nikkei 225 jumped 1.13%, while the South Korea’s KOSPI advanced 0.62%. The mainland Chinese stocks also edged higher, with the Shanghai composite trading 0.43% higher.
Overnight on Wall Street, the Dow Jones Industrial Average rose 0.52%. The Nasdaq Composite added 1.76%, riding the tech rally, while S&P 500 gained 1.18%, to cross the 4,000 mark for the first time.
OIL
Oil eased Friday on profit taking. The Brent crude futures traded to $64.65 per barrel, and the U.S. crude futures at $61.24 per barrel.
Overnight, both benchmarks rose almost 4% following the OPEC+ alliance decision. The Brent closed at $64.86 for Brent while WTI futures ended at $61.45 per barrel.
CURRENCIES
Treasuries rebounded after the worst quarter in decades with benchmark yields falling back below 1.7% on higher-than-expected weekly jobless claims. The dollar retreated, easing off its 3.5% gains of nearly 3-year highs in the Q1, with the index stood at 92.86, on course for its third consecutive week of gains.
GOLD
Gold prices rose on lower dollar and Treasury yields. The spot gold advanced to trade at $1,730.30 an ounce, while added to around $1,728.40 per ounce for gold futures. Previously closed at $1,708.80 and $1,715.60, respectively.
Silver rose to $24.92, while platinum added to $1,206.00 and palladium gained to $2,586.00.
ECONOMIC OUTLOOK
Asian stocks set for gains on Friday, tracking the overnight improvement on Wall Street on optimism about increased stimulus in the world’s largest economy.
Technology shares led gains, joined by the value stocks on the rally. Trading expected to be light with holidays across the region. Good Friday starts the Easter weekend in countries including the U.S., U.K., France, Germany, Australia, and Canada.
Investors are cheering increasing signs of strength in the U.S. economy, with Friday’s U.S. employment report expected to show the quickest pace of hiring in five months. Biden’s ambitious plan to rebuild U.S. infrastructure has added to the growth outlook, even though Republican opposition to the plan raises questions about how much can actually be delivered.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 129.51 million, recording more than 2.82 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 110.862 and 110.990.
- Support line of 110.206 and 109.928.
Commentary/ Reason:
The dollar on Friday consolidated below Wednesday’s 1-year high, at 110.624, little changed on the day, after moved slightly lower overnight.
The dollar rally was undercut as the yields falling back below 1.7% on higher-than-expected weekly jobless claims. The dollar also being weighted by the recent upward momentum in new U.S. COVID-19 infections. The 7-day average is up +11.4% from a week earlier level.
In a supportive factor for the yen, the country’s March vehicle sales report rose compared with the previous month, aside from the better-than-expected PMI figure on the day before.
While investors awaited on jobs report later today, trading is likely to be muted on Friday with many financial markets shut for Easter holidays.
