EQUITIES
Asia-Pacific markets traded mostly lower on Friday. Except for Japan’s Nikkei 225 and the India’s S&P BSE Sensex that rose. Both indexes added 0.37% and 0.17%, respectively.
Mainland Chinese stocks declined as the Shanghai composite shed about -0.80% and the Hong Kong’s Hang Seng index slipped -0.70%. South Korea’s KOSPI shed -0.2%, Singapore’s Straits Times index traded -0.18% lower, and stocks in Australia dipped as the S&P/ASX 200 declined -0.26%.
Overnight on Wall Street, the Dow Jones Industrial Average rose 0.17% to 33,503.57, the S&P 500 gained 0.42% to 4,097.17 in its second straight record close, and the Nasdaq Composite closed at a 7-week high, added 1.03% to 13,829.31.
OIL
Oil prices edged up on Friday, supported by a weaker dollar that offset concerns over a big jump in U.S. gasoline stocks.
The Brent crude futures traded to $63.24 per barrel, and the U.S. crude futures at $59.69 per barrel.
Overnight, the Brent closed at $63.20 while WTI ended at $59.60 per barrel.
CURRENCIES
The softer unemployment data and Powell's dovish comments helped yields on the benchmark 10-year U.S. Treasury note drop to its lowest level since March 26.
The dollar was headed for its worst week of the year on Friday after dropped to a 2-week low against a basket of currencies, tracking Treasury yields. The dollar index last stood at 92.14.
GOLD
Gold prices jumped earlier in the day, scaling a 1-month peak as the Fed's assurances weighed on Treasury yields and the greenback, before slipped back.
The spot gold declined to trade at $1,751.70 an ounce and shed to around $1,753.30 per ounce for gold futures. Previously closed at $1,755.80 and $1,758.20, respectively.
ECONOMIC OUTLOOK
Asian equities are set for a choppy trading session on Friday as investors weighed the second straight weekly increase in the number of Americans filing new claims for unemployment benefits against the S&P 500 new record close, and Nasdaq’s a 7-week high close.
The softer unemployment data helped yields on the benchmark 10-year U.S. Treasury note drop to its lowest level since March 26, and spur demand for high growth stocks in the technology sector.
Fed Chairman Jerome Powell reiterate the accommodative stance outlined in the minutes of the Fed's policy meeting published on Wednesday at the IMF event on Thursday, offering no new catalysts to dictate market direction.
U.S. Federal Reserve Chairman Jerome Powell said the central bank is nowhere near reducing its support for the U.S. economy, while added the economic reopening could result in a momentary surge in prices, though expected to be short-lived, and it will not constitute inflation.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 133.79 million, recording more than 2.90 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.979 and 110.336.
- Support line of 108.824 and 108.468.
Commentary/ Reason:
The Japanese yen weakened marginally, down 0.02% versus the greenback at 109.278 per dollar.
The yen, however, poised for their largest weekly percentage gains in five months, as it gains mostly on Monday, Tuesday, and Thursday to accumulate around 1.3%.
A drop in Treasury yields pressured the greenback, as the benchmark 10-year U.S. Treasury note drop to its lowest level since March 26.
Thursday’s weekly U.S. jobless data and Powell’s comments at the IMF event that reaffirmed the accommodative stance outlined in the FOMC meeting published on Wednesday was dovish for Fed policy and negative for the dollar.
The yen advance however, was undercut by reports of rising COVID-19 cases in Japan, that raised alarm over another setback in its recovery from the pandemic.
