EQUITIES
Asia-Pacific markets were higher on Tuesday, with the India’s S&P BSE Sensex index leading the gains, adding about 2.56%, followed by the Hong Kong’s Hang Seng index that rose 1.82%, the Australia’s S&P/ASX by 1.50%, and the South Korea’s KOSPI index at 1.48% higher. The Shanghai composite gained 0.55%, the Singapore’s Straits Times index gained 0.69, and the Nikkei 225 rose 0.92%.
Overnight on Wall Street, the Dow Jones Industrial Average rose 229.29 points to close at 30,211.91. The S&P 500 gained 1.6% to end its trading day at 3,773.86 while the Nasdaq Composite surged 2.6% to close at 13,403.39.
OIL
Oil gains on Tuesday as falling inventories and rising fuel demand due to a massive snowstorm in the Northeast U.S. propped up prices, though halting vaccine rollouts and renewed travel restrictions capped further gains. The Brent crude futures traded to $56.86 a barrel, while U.S. crude at $54.07.
On Monday, the Brent closed at $56.35 per barrel, while WTI futures ended at $53.55 per barrel.
CURRENCIES
The dollar index retreated from a 6-week high overnight, to 90.93 on Tuesday.
U.S. Treasury yields also were pushed down by expectations of lower borrowing to fund economic stimulus measures.
The riskier Aussie dollar added 0.07% to $0.7623, rebounding from two days of losses, after the central bank announced its interest rate decision earlier today. The New Zealand dollar rose 0.22% to $0.7171. The offshore yuan fell 0.4% to 6.4749 per dollar.
GOLD
Safe-haven gold slipped to $1,853.70 per ounce, while down around $1,855.30 per ounce for gold futures. Previously closed at $1,861.20 and $1,863.90, respectively.
Silver trading at $27.81, platinum trading at $1,108.00 and palladium trading at $2,178.00.
ECONOMIC OUTLOOK
Asian stocks open higher Tuesday after U.S. shares had their biggest rally in about 10 weeks overnight as concerns of recent onslaught of speculative buying eased. Investors back to monitor corporate earnings, stimulus talks and global economic recovery.
U.S. President Joe Biden and Republican senators are set for a series of negotiations later today regarding the new COVID-19 support bill.
The UK government on Monday announced that it had applied to join the Asia-Pacific trade bloc, formally known as the Comprehensive and Progressive Trans-Pacific Partnership (TPP11)
In U.S. economic front, the latest ISM survey was mixed as U.S. manufacturing activity slowed slightly in January, while a measure of prices paid by factories for raw materials and other inputs jumped to its highest level in nearly 10 years.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 103.399 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.238 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.110 and 105.284.
- Support line of 104.548 and 104.373.
Commentary/ Reason:
The dollar pulled back on Tuesday after crossing 105 marker overnight for the first time since mid-November. The Japanese yen weakened 0.06% versus the greenback at 104.98 per dollar.
The U.S. dollar regained on weakness in the Japanese yen on the view that the U.S. has an advantage in growing its economy and vaccinating its population against COVID-19.
Meanwhile, the Japanese government is set to announce an extension till March 7 in the state of emergency covering Tokyo and other regions struggling to contain coronavirus outbreaks.
Rally in global equity markets has also curbed the safe-haven demand for the yen.
