EQUITIES

Asia-Pacific markets were mostly lower on Thursday trade. Except for the Shanghai composite that gained 0.05%, others were lower. Japan’s Nikkei 225 declined -0.63% South Korea’s KOSPI lose -0.58%, Singapore’s Straits Times index retreated -0.49%, Australia’s S&P/ASX 200 slipped -0.10%, and Hong Kong’s Hang Seng index were -0.61% lower.

Overnight on Wall Street, the Dow Jones Industrial Average fell 1.16%, the S&P 500 lost 1.16%, and the Nasdaq Composite dropped 0.82%.

OIL

Oil edged lower from a 2-month high after news of fresh coronavirus restrictions in the U.S. reignited pessimism on the demand outlook, even as a vaccine appears to be getting closer. Brent crude futures traded to $44.18 a barrel, while U.S. crude at $41.56.

On Tuesday, Brent closed at $44.34 per barrel, while WTI futures ended at $41.82 per barrel.

CURRENCIES

U.S. dollar slipped for five sessions in a row before steadying a little on Thursday. Against a basket of currencies, it was last at 92.48, still close to recent lows of 92.129.

The New Zealand dollar and Norwegian krone hold on to most of Wednesday's gains. The Aussie lagged a little as a fresh coronavirus outbreak prompted a new hard lockdown in South Australia. The Chinese yuan sat near a 29-month high in offshore trade.

GOLD

Speculation of policy easing put a floor under gold prices, currently trading at $1,866.50 per ounce, while stands around $1,864.90 per ounce for gold futures. Previously closed at $1,871.50 and $1,873.90, respectively.

Silver trading at $24.18, platinum trading at $932.00 and palladium trading at $2,200.00.

ECONOMIC OUTLOOK

Asian stocks followed Wall Street's sharp selloff on Thursday as concerns about rising coronavirus infections and new shutdowns in major U.S. cities dampened the optimism from vaccine trial breakthroughs.

U.S. bonds were underpinned by speculation the Fed would have to respond with more easing.

Canada and the UK are closer to signing a new trade agreement, which will replace the existing deal Britain has through EU membership.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 56.187 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.348 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 104.240 and 104.453.

- Support line of 103.553 and 103.341.

Commentary/ Reason:

- Moves in Asian morning trade were small, with the yen a fraction stronger at 103.735 per dollar, but not far above an 8-month high of 103.18 made two weeks ago.

- The yen has recouped almost three quarters of the steep loss it suffered last week when Pfizer announced its COVID-19 vaccine.

- Today's slump in equity markets has sparked safe-haven buying of the yen, which is weighing on USD/JPY.