EQUITIES

Asia-Pacific markets reversed earlier losses. Shares in Australia led on the gains, as the S&P/ASX 200 added about 1.04%, while the Nikkei 225 up 0.16%, and Singapore’s Straits Times index moved 0.49% higher. Meanwhile, mainland Chinese stocks dipped, as the Shanghai composite shed -0.25%, and South Korea’s KOSPI declined 0.09%.

Trading in Hong Kong stocks was suspended Tuesday morning as Typhoon Nangka struck.

Overnight, The S&P 500 jumped 57 points, or 1.64%, to 3,534.22. The Dow Jones Industrial Average climbed 250 points, or 0.88%, to 28,837.52. Nasdaq Composite stage its biggest 1-day rally in a month, jumping 296 points, or 2.56%, to 11,876.26.

OIL

Oil prices higher on the morning of Asian trading hours. Brent crude futures traded to $41.85 a barrel, while U.S. crude at $39.55.

On Monday, Brent closed at $41.72 per barrel, while WTI futures ended at $38.43 per barrel.

CURRENCIES

The dollar index stood at 93.036, just above Friday’s near-three-week low of 92.997. The U.S. dollar was pinned near a three-week low, slugged by stronger investor demand for risk.

The Australian dollar dropped 0.54% to $0.7168, after media reports China has stopped taking shipments of Australian coal. The offshore Chinese yuan nursed losses after China’s central bank announced a measure that made it cheaper to short the yuan. The yuan last stood at 6.7626 to the dollar, off Friday’s 17-month high of 6.6785.

GOLD

Spot gold stayed below a three-week high, currently trading at $1,915.50 per ounce, while stands around $1,920.50 per ounce for gold futures. Previously closed at $1,921.90 and $1,928.90, respectively.

Silver trading at $24.73, platinum trading at $862.00 and palladium trading at $2,307.00.

ECONOMIC OUTLOOK

Asian stocks were set to rise on Tuesday as global stocks scaled five-week highs Monday on a renewed tech rally and fresh optimism that Washington would deliver a coronavirus relief package.

China’s exports in August rose 9.9% from a year earlier, and imports surged 13.2%, returning to growth from a slump of 2.1% in August.

Beijing’s tensions with Washington are in view again after the White House moved forward with three sales of advanced weaponry to Taiwan.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 37.738 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.078 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 105.679 and 105.854.

- Support line of 105.113 and 104.938.

Commentary/ Reason:

- The dollar posted moderate losses against safe-haven yen, as the yen strengthened to 105.38 per dollar.

- Comments on Monday from BOJ Governor Kuroda boosted the yen when he said that Japan's inflation rate would turn positive next year. Also, boosting the yen was Monday's news that Japan's Aug core machine orders report that rose. Though its Sep PPI and machine tool order fell.

- Gains in the dollar were also limited by a rally in U.S. stock indexes overnight, which curbed the liquidity demand for the dollar. A growing expectation of U.S. stimulus approval also has been weakening the dollar in the short term, by improving investors’ mood and their willingness to buy riskier assets such as stocks and commodity currencies.