EQUITIES
Shares in Asia-Pacific rose in Thursday trade, with Hong Kong stocks leading gains. The Hang Seng index in Hong Kong jumped 2.50% as shares of Chinese tech giants Tencent and Alibaba rose 3.7% and 6.0%, respectively.
The South Korea’s KOSPI advanced 1.74%, the Australia’s S&P/ASX 200 rose 0.49%, and the Straits Times index in Singapore added 0.90%. The Japanese shares also jumped after eight consecutive sessions of falls, with the Nikkei 225 up 1.68%.
Mainland Chinese markets remain closed on Thursday for a holiday and will reopen on Friday.
Overnight on Wall Street, the Dow Jones Industrial Average rose 102.32 points to 34,416.99, the S&P 500 gained 0.41% to 4,363.55, and the Nasdaq Composite edged 0.47% higher to 14,501.91.
European markets also set to open higher later today, as investor concerns about a debt ceiling deal eased.
OIL
Oil prices dropped for a second session Thursday, under pressure from an unexpected rise in the U.S. inventories and after Russia’s signal that supply to Europe could increase.
U.S. crude inventories rose by 2.3 million barrels last week, the data from the U.S. EIA, against expectations for a modest dip of 418,000 barrels. Gasoline inventories also rose, while distillate inventories were down slightly.
The Brent now traded at $80.59 per barrel, while U.S. crude futures traded at $76.68 per barrel.
Overnight, the Brent ends at $81.08 a barrel, and the WTI at $77.43 per barrel.
CURRENCIES
The yield on the U.S. 10-year Treasury note was little changed on Thursday, last sitting at 1.529%. Investors are continuing to weigh the economic recovery against inflation risks from a jump in energy costs. The benchmark U.S. 10-year Treasury yield recently crossed 1.5% and has largely sustained above that level.
The dollar was steady, held close to a one-year high hit last week against a basket of currencies, flat at 94.250.
GOLD
Gold prices inched lower on Thursday as a firmer dollar and rise in U.S. Treasury yields weighed on the precious metal's appeal, and as investors moved to the sidelines ahead of a U.S. payrolls report that is expected to provide clues on the Federal Reserve's tapering timeline.
Spot gold shed 0.20% at $1,759.80 per ounce, while U.S. gold futures were flat at $1,759.00.
Spot silver rose at $22.58 per ounce, platinum fell 0.04% to $976.80, and palladium rose 0.8% to $1,883.00.
ECONOMIC OUTLOOK
Asian shares rallied on Thursday, following an overnight recovery on Wall Street on signs of progress in U.S. political negotiations over debt ceiling, and as Russia reassured Europe on gas supplies, calming volatile markets. The dollar remained higher, and Treasuries were steady as traders await key American jobs data.
Top U.S. Senate Republican Mitch McConnell appeared near to a temporary deal to avert a federal debt default in the next two weeks, after Democrats said they might accept a Republican proposal to defuse the partisan standoff that threatens the broader economy.
ADP employment data beat expectations and a robust U.S. nonfarm payrolls report Friday could cement predictions of a reduction in Federal Reserve stimulus starting next month. Data on Wednesday showed U.S. private payrolls increased by 568,000 jobs in September, increased more than expected, as COVID-19 infections subsided.
Investors also remain on edge as they grapple with a parade of risks, including monetary-policy tightening to tackle price pressures and the impact on Chinese growth of Beijing’s curbs on a debt-laden property sector.
The global energy crunch is also unsettling markets: natural gas prices - up as much as 40% at one point - turned lower after Russia’s President Vladimir Putin said the country is ready to help.
