EQUITIES

Asia-Pacific markets lower on Monday. Except for the Shanghai Composite that gains 0.05%, other index faltered. Japanese shares fell from a 29-1/2-year high hit earlier in the session to retreated -0.35%. The Australia’s S&P/ASX 200 shed -0.16%. The Hong Kong’s Hang Seng index slipped -0.21%, and Singapore’s Straits Times index declined -0.21%, and the South Korea’s KOSPI down slightly below the flatline.

OIL

Oil prices were lower as it ran into profit-taking and on concern over the fast-spreading new coronavirus strain in the UK, that raised for tighter restrictions. The Brent crude futures traded to $50.70 a barrel, while U.S. crude at $47.65.

On Friday, Brent closed at $52.26 per barrel, while WTI futures ended at $49.10 per barrel.

CURRENCIES

The dollar index edged up a little to 90.44 and away from last week's lowest since April 2018 of 89.723.

The Australian dollar changed hands at $0.7528, having risen from levels below $0.752 last week. Kiwi dollars dropped 0.60% to trade at 0.7092. The Mexican peso sank 1.1% to 20.1524 per dollar.

The dollar rose 0.2% to 6.5346 Chinese yuan in the offshore market, the biggest advance in almost a month. It traded at 6.5505 yuan in the onshore market. Earlier on the day, China kept its benchmark lending rate unchanged.

GOLD

The general risk-off mood saw gold prices gains. Spot gold currently trading at $1,898.40 per ounce, while added to around $1,904.50 per ounce for gold futures. Previously closed at $1,881.00 and $1,888.90, respectively.

Silver trading at $26.77, platinum trading at $1,040.00 and palladium trading at $2,265.00.

ECONOMIC OUTLOOK

Most Asian indices were heading towards a downtrend on rising concerns over COVID-19 cases globally, supplemented with the new strains of COVID-19 cases found in London, consequently dampened the market over vaccine developments.

Difficult Brexit talks dragged on with no agreement in sight, with the country’s emergency virus lockdown added on pressure.

In the U.S., the Congress had reached a $900 billion coronavirus relief package on Sunday, following months of negotiations, with votes likely on Monday.

China on Monday kept its Loan Prime Rates unchanged, in line with expectations. The 1-year and 5-year LPR were kept at 3.85% and 4.65%, respectively.

Positive developments on the coronavirus vaccine front, with the U.S. FDA approving Moderna’s COVID-19 vaccine for emergency use.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 76.798 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.692 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 103.620 and 103.742.

- Support line of 103.227 and 103.106.

Commentary/ Reason:

- The dollar was steady on the yen at 103.423, added 0.19% latest on the day.

- Approved U.S. stimulus package and weakening stocks today also performed among the catalyst in adding dollar value.

- The dollar also found support from a Nikkei report that Japanese Prime Minister Yoshihide Suga told Finance Ministry officials in November to make sure the dollar did not fall below 100 yen.

- Meanwhile, the Japan's cabinet approved on Monday a record 106.6 trillion yen ($1.03 trillion) budget draft for the next fiscal year starting in April 2021, the Ministry of Finance said