EQUITIES
Asia-Pacific stocks were mostly higher in Wednesday trade. The Nikkei 225 advanced more than 1.25% to lead the regional gains. Mainland Chinese stocks likewise nudged higher as the Shanghai composite rose 0.86%, and the Hong Kong’s Hang Seng index traded 0.62% higher.
Other regional stocks also advanced, as the South Korea’s KOSPI rose 0.25%, the Singapore’s Straits Times index jumped 1.08%, and the S&P BSE Sensex in India added 0.39%.
Australian stocks meanwhile lagged as the S&P/ASX 200 slipped 0.33%.
Overnight on Wall Street, stocks seesawed near breakeven, before finished marginally lower. The Dow Jones Industrial Average fell 39.11 points to 35,360.73, the S&P 500 lost 6.11 points to 4,522.68 and the Nasdaq Composite dropped 6.66 points to 15,259.24.
OIL
Oil prices were steady on Wednesday, as investors weighed the prospect of additional OPEC+ production, soaring COVID-19 cases in Asia and as U.S. refiners assess flood damage in the wake of Hurricane Ida.
The Brent now traded at $72.06 per barrel, while U.S. crude futures traded at $68.98 per barrel.
Overnight, the Brent settled at $72.99 a barrel, and the WTI ends at $68.50 per barrel.
CURRENCIES
The dollar index clawed 0.1% higher, having hit a more than 3-week low on Tuesday. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.759 following a recent bounce from around 92.4.
U.S. Treasury yields rebounded after earlier easing a bit following the U.S. consumer confidence data. The benchmark 10-year yield rose 2.5 basis points to yield 1.327%.
GOLD
Gold prices held steady on Wednesday as investors awaited a key U.S. jobs report. Friday's U.S. nonfarm payrolls data is expected to help shape the Fed's stance on monetary policy.
Spot gold was steady at $1,815.10 per ounce, while the U.S. gold futures slightly down to $1,816.80.
Silver was flat at $23.91 per ounce, while platinum dipped 0.64% to $1,007.60. Palladium climbed to $2,472.50.
ECONOMIC OUTLOOK
Asian stocks rose on Wednesday as traders evaluate economic risks from the Delta virus strain and the prospect of a reduction in pandemic-era central bank stimulus support.
Markets were quite subdued as investors wait for a U.S. jobs report for August on Friday that could shape how soon the Federal Reserve begins to withdraw its support of the economy when it begins to taper bond buying.
Manufacturing activity in August expanded at a slower rate in Japan, South Korea and Taiwan as chip shortages and factory shutdowns disrupted production, in a fresh sign of the lingering impact of the pandemic, Markit surveys showed on Wednesday. China's factory activity slipped into contraction in August for the first time in nearly 1-1/2 years.
Some of the main moves in markets today including the Eurozone manufacturing PMI and OPEC+ meeting on output.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 110.320 and 110.465.
- Support line of 109.790 and 109.405.
Commentary/ Reason:
The dollar traded at 110.240 yen, rose 0.22% to bounce off 1-week low recorded yesterday.
The pair remained around 109.02-110.66 trading range that has prevailed since early July, with investors focused on a key U.S. jobs report due on Friday for clues on when the Federal Reserve might begin paring stimulus.
Japanese yen eased as the Nikkei bourse hitting 1-1/2-month highs on Wednesday. The yen also weakened after T-note yields rose.
Bullish momentum looks moderate currently. The bulls could have better chances if the pair breaks above 110.32, the immediate resistance level, while the risk will turn to the downside if the pair falls below 109.79.
With enough momentum, the next targets will be 110.4, and a strong bearish turn will occur if the pair moves below the support level at 109.79 to 109.40.
