EQUITIES
Shares in Asia-Pacific were mixed in Wednesday trade. Japan’s Nikkei 225 climbed 0.16% while the S&P/ASX 200 in Australia gaining 0.79%. In Southeast Asia, the Straits Times index in Singapore rose 0.08%.
Mainland Chinese stocks were mixed, with the Shanghai composite slipping 0.17% while the Hang Seng index in Hong Kong rose 1.35%.
Elsewhere, the South Korea’s KOSPI shed 0.13%, and the S&P BSE Sensex in India traded 0.08% lower.
Overnight on Wall Street, the Dow Jones Industrial Average rose 0.56%, to 35,457.31, the Nasdaq Composite added 0.71%, to 15,129.09, and the S&P 500 gained 0.74%, to 4,519.63.
OIL
Oil prices turned lower on Wednesday after the Chinese government flagged it was looking for ways to tame record high coal prices and that it would ensure coal mines operate at full capacity as Beijing moved to ease a power shortage.
China on Tuesday revived concerns about its ability to meet heating demand needs amid power and coal shortages, while colder weather has started to grip the country.
The market was also pressured by data from the API industry group which showed U.S. crude stocks rose by 3.3 million barrels for the week ended Oct. 15, according to market sources. Although, U.S. gasoline and distillate inventories fell much more than analysts had expected, pointing to strong demand. Gasoline inventories fell by 3.5 million barrels and distillate stocks fell by 3 million barrels, the data showed, according to the sources.
Data from the U.S. Energy Information Administration is due on Wednesday.
The Brent now traded at $84.44 per barrel, and U.S. crude futures traded at $82.88 per barrel.
Overnight, the Brent ends at $85.08 a barrel, and the WTI settled at $82.96 per barrel.
CURRENCIES
The positive mood saw U.S. bond yields rising further, with the 10-year U.S. Treasuries yield surged to 1.664%, a high last seen in May. However, the shorter-dated yields declined, as the two-year Treasury yields hovered around 0.4050% after retreating sharply overnight from Monday’s 19-month high of 0.448%, signalling a scaling back of bets for early Federal Reserve interest rate hikes.
The dollar index against a basket of other currencies was last down at 93.721, after earlier dropping to 93.50, the lowest since Sept. 28.
China kept its benchmark lending rate unchanged on Wednesday, in line with expectations. The one-year LPR was kept unchanged at 3.85% while the five-year LPR was also held steady at 4.65%.
Bitcoin stood at $63,900, near its all-time peak of $64,895 as the first U.S. bitcoin futures-based exchange-traded fund began trading. The first ETF began trading on Tuesday, sending Bitcoin to a six-month high and just off its all-time peak, as traders bet the ETF could boost investment flows into cryptocurrencies.
The ProShares Bitcoin Strategy ETF closed up 2.59% at $41.94 in its first day of trading, with around $1 billion worth of shares trading hands on Intercontinental Exchange Inc's NYSE Arca exchange under the ticker BITO.
GOLD
Gold prices edged higher on Wednesday, as the shorter-dated yields declined. Spot gold rose 0.28% to $1,774.00 per ounce, while the U.S. gold futures up 0.16% to $1,773.30.
Spot silver fell 0.43% to $23.78 an ounce, while platinum dropped 0.51% to $1,041.80 and palladium eased 0.80% to $2,084.00.
ECONOMIC OUTLOOK
Asian shares advanced on Wednesday on rising optimism about the global economy and corporate earnings.
Underpinned by overnight strength on Wall Street, higher U.S. Treasury yields lifted the brokerage and banking shares, as well as boosted from the technology and healthcare sectors amid solid quarterly reports. Commodity stocks took a breather after their recent rally, though expected to stay elevated over the near-to-medium term.
China's new home prices stalled for the first time since February 2020 in September, official data showed on Wednesday, as the chill in the property market intensified amid tightening credit due to an ongoing crackdown on speculative investment. Debt-ridden developer China Evergrande Group shelved plans to sell a majority stake in its property services business. Hong Kong-listed shares of Chinese real estate firms slipped on Wednesday, with China Vanke falling 1.67% while Country Garden declined 1.53% and Sunac dropped 1.23%. The Hang Seng Properties Index declined 0.49%.
The IMF on Tuesday slashed its 2021 economic growth forecast for Asia, now expecting the region to grow by 6.5% this year, as a spike in Delta variant cases hit consumption and factory output. That compared against the IMF’s April forecast for a 7.6% expansion.
Earning reports will be in full swings in many countries over coming weeks. Dutch chip-making machine maker ASML Holdings and Tesla are among those that will release results later Wednesday.
