EQUITIES
Asia-Pacific markets were higher on Thursday, with the Shanghai composite leading the gains, rising about 1.30% while the Hong Kong’s Hang Seng index advanced 0.06%. The South Korea’s KOSPI jumped 0.86%, the Australia’s S&P/ASX up 0.75%, and the India’s S&P BSE Sensex index 0.61% higher. The Nikkei 225 added 0.73%, and the Singapore’s Straits Times index rose 0.07%.
Overnight on Wall Street, the Dow Jones Industrial Average rose 0.83%, to 31,188.38, the S&P 500 gained 1.39%, to 3,851.85 and the Nasdaq Composite added 1.97%, to 13,457.25.
OIL
Oil prices little changed as traders weighting between the rise of U.S. crude stocks and anticipation of more stimulus spending. The Brent crude futures traded to $55.86 a barrel, while U.S. crude at $53.28.
On Friday, the Brent closed at $56.08 per barrel, while WTI futures ended at $53.24 per barrel.
CURRENCIES
The dollar fell against most currencies on Thursday, as investors' risk appetite held up. Against a basket of currencies, the dollar index slipped 0.18%, to sat at 90.30.
The Australian dollar changed hands at $0.7776, having risen from levels below $0.77 seen earlier this week. New Zealand dollars edged up in morning trade to also hold modest overnight rises, last up 0.56% to $0.7209.
GOLD
Safe-haven gold jumped 0.40% on Thursday to $1,872.40 per ounce, while added around $1,871.00 per ounce for gold futures. Previously closed at $1,872.00 and $1,866.50, respectively.
Silver trading at $25.92, platinum trading at $1,099.00 and palladium trading at $2,264.00.
ECONOMIC OUTLOOK
The main index of Asia-Pacific rose regionally to fresh all-time highs Thursday as renewed optimism over U.S. fiscal spending lifted global investor sentiment and bolster corporate earnings. The Biden administration is expected to push through a nearly $2 trillion U.S. fiscal stimulus plan.
Regional markets also expected to trend higher today as investors expect Biden to improve U.S. ties with China.
U.S. President Joe Biden signed 15 executive actions shortly after being sworn on Wednesday, including on border wall funds, global climate accord, health, pandemic, and Muslims ban.
U.S. crude oil stocks unexpectedly rose last week, swelling by 2.6 million barrels to about 487.1 million barrels in the week to Jan. 15, API data showed.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 96.829 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.073 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 103.949 and 104.147.
- Support line of 103.308 and 103.109.
Commentary/ Reason:
The dollar was mostly flat at 103.489 yen on Thursday, after sliding to a 2-week low of 103.446 overnight.
The expectation for additional fiscal stimulus reinforced after Democrat control of the Senate, weighted on the dollar.
In its monetary statement earlier today, the BoJ kept the policy steady and revised up its economic forecast for next fiscal year, signalling that it has delivered sufficient stimulus for now to cushion the blow from the COVID-19 pandemic.
The central bank kept unchanged its target for short-term interest rates at -0.1% and that for 10-year government bond yields around 0% in a two-day rate review.
Meanwhile, in economic data, Japan’s exports rose 2.0% in December from a year earlier, marked the first annual increase since November 2018.
