EQUITIES
Asia-Pacific markets were higher on Thursday, except for Australian shares that retraced earlier losses as the benchmark ASX 200 traded -0.27% lower.
The South Korea’s KOSPI led the gains in the regional market, rose 2.06%. In Japan, the Nikkei 225 added 0.41%, the Singapore’s Straits Times index advanced 0.87%, and the India’s S&P BSE Sensex index was up 0.50%. Chinese mainland shares also gained as the Shanghai composite added 1.78% while the Hang Seng index rose 1.60%.
Overnight on Wall Street, the Dow Jones Industrial Average rose 1.45% to a record closing high, the S&P 500 gained 0.60%, while the Nasdaq Composite dropped 0.04%. Europe's main index hovered near pre-pandemic highs.
OIL
Oil prices resumed their climb following two days of declines, after the EIA reported a bigger-than-expected storage build. The Brent crude futures traded to $68.44 per barrel, while the U.S. crude futures at $64.93 per barrel.
On Wednesday, Brent closed at $67.90 while WTI futures ended at $64.44 per barrel.
CURRENCIES
An improving sentiment eased the U.S. dollar. In the currency market, the U.S. dollar last traded at 91.79 against a basket of its peers, withdrawing from levels above 92.00 reached earlier in the weeks.
Benchmark 10-year notes last yielded 1.5317%, stabilising from lows of 1.5060% overnight following an auction of benchmark 10-year notes that was not as bad as feared. Investors will now eye an auction of 30-year debt on Thursday.
GOLD
Gold rose to a 1-week high as U.S. Treasury yields eased. Gold spot added to trade at $1,730.90 an ounce, while advanced around $1,729.50 per ounce for gold futures. Previously closed at $1,726.90 and $1,721.80, respectively.
ECONOMIC OUTLOOK
Asian shares climbed on Thursday following recoveries in U.S. and Chinese equities, as falling bond yields eased concerns about surging inflation, while the outlook for global economic recovery brightened.
The House of Representatives gave the final approval on Wednesday, handed the $1.9 trillion coronavirus relief package. President Joe Biden expected to sign the relief bill on Friday.
U.S. inventory report from the EIA showed crude inventories rose by 13.8 million barrels in the week to March 5 to 498.4 million barrels, while gasoline stocks fell by 11.9 million barrels to 231.6 million barrels.
Focus shifted to Europe where the ECB is due to meet later today.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 117.997 million, recording more than 2.619 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.393 and 110.066.
- Support line of 108.047 and 107.374.
Commentary/ Reason:
The safe-haven yen eased 0.16% to 108.537 per dollar.
The dollar gained on the low-yielding yen, supported both by the stabilising Treasury yields and the upswing in risk aversion the bond rout has generated.
The rally in stock indexes curbed the yen’s safe-haven appeal.
Supportive for the yen was as the Bloomberg published a report that stated that the BoJ is said to look at ways to enable bond yields to fluctuate more as they try to improve the functioning of a bond market dominated by the central bank. Some of the BoJ officials want to generate more fluctuations in yields while sticking with the current movement range of around 20 basis points either side of the BOJ’s zero target on 10-year government debt. The policy review is scheduled to be held next week.
Japan’s 10-year JGB futures were trading at 151.06 after falling as low as 150.90 yen Wednesday night.
