EQUITIES
Shares in Asia-Pacific were mixed on thinned Tuesday trade. In Hong Kong, the Hang Seng index rose 0.24%, while over in India, the BSE Sensex advanced 0.11%. In Australia, the S&P/ASX 200 edged 0.51% higher.
Meanwhile in South Korea, the KOSPI slipped 0.10%, and the Singapore’s Straits Times Index shed -0.18%.
Markets in China, Japan and Thailand are closed on Tuesday for holidays.
Overnight on Wall Street, the Dow Jones Industrial Average surged rose 0.7% to close at 34,113.23 points while the S&P 500 gained 0.27% to finish its trading day at 4,192.66. The tech-heavy Nasdaq Composite lagged as it declined 0.5% to close at 13,895.12.
OIL
Oil prices held it overnight gains as easing restrictions in the U.S. and Europe raise hope of stronger demand. The EU also is planning to ease restrictions on vaccinated travellers over the summer. Meanwhile, concerns of a full lockdown in India still weighted on the prices.
The Brent crude futures traded at $67.63 per barrel, and U.S. crude futures traded at $64.49 per barrel.
Overnight, the Brent closed at $67.56 while WTI ended at $64.49 per barrel.
CURRENCIES
The dollar steadied after declining along with Treasury yields. The dollar index was up 0.2% against its rivals, last at 91.15.
10-year Treasury yields dropped back to around 1.6% amid comments from U.S. Fed chair Jerome Powell that the economic recovery was patchy.
Cryptocurrency ether extended gains to another record peak on Tuesday above $3,400, after breaking above $3,000 for the first time a day earlier as investors bet on its growing utility. Bitcoin traded steady, hovered around $55,600.
GOLD
Gold prices retreated from a more than 2-month high hit in the previous session, as a stronger dollar and optimistic comments from the U.S. Fed on the economy weighed on the metal's safe-haven appeal.
The spot gold retreated to trade at $1,788.40 an ounce and slipped to $1,789.50 per ounce for gold futures. Previously closed at $1,792.90 and $1,791.80, respectively.
ECONOMIC OUTLOOK
Asian stocks were mixed in Tuesday morning trade with major markets in Japan and China still closed for holidays.
The largely upbeat earnings season sent S&P 500 and the Dow indexes to end higher, while the Nasdaq came under pressure from declines in some high-flying growth stocks, as the rotation into cyclical and “economy reopening” stocks continued.
U.S. manufacturing activity cooled in April, restrained by shortages of inputs as rising vaccinations against COVID-19 and massive fiscal stimulus unleashed pent-up demand. The ISM’s index fell to a reading of 60.7 after surging to 64.7 in March.
Euro zone factory activity growth surged to a record high in April, the IHS Markit's final Manufacturing PMI rose to 62.9 from March's 62.5.
South Korea's consumer inflation accelerated to a near 4-year high in April. The CPI rose 2.3% and core CPI rose 1.1% YoY.
Some key events to watch today including U.S. trade balance, factory orders, durable goods, API oil data and UK manufacturing PMI.
Among U.S. corporate earnings due today including CVS Health, Pfizer, Sysco, DuPont, T-Mobile US, Caesars Entertainment, Zillow, Under Armour and Activision Blizzard.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 153.18 million, recording more than 3.20 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.732 and 110.053.
- Support line of 108.694 and 108.373.
Commentary/ Reason:
With Asia trade thinned by holidays in Japan and China, further moves were muted, leaving the dollar to drift up slightly off overnight levels to sit at 109.280 yen on Tuesday.
Strength in T-note yields lifted the USD/JPY and undercut the yen.
A mixed session in stocks on Tuesday also curbed the safe-haven appeal of the yen.
The USD/JPY is making its way back to a recent ceiling at the 110 price level. Bullish momentum is currently moderate and unlikely to result in any real challenge to the resistance area. Therefore, the current trading range may remain intact in the near-term.
