EQUITIES
Shares in Asia-Pacific were mixed in Wednesday trade. The Nikkei 225 in Japan caught up with global falls the day before as it returned from holiday, dipped 1.30% to lead losses in the region. South Korea’s KOSPI shed 0.37%, Hong Kong’s Hang Seng index slipped 0.06%, and mainland Shanghai composite was down 0.10%.
Elsewhere, the Australia’s S&P/ASX 200 rose 0.02%, the Straits Times index in Singapore added 0.11%, and the S&P BSE Sensex in India gained 0.15%.
OIL
Oil steadied on Wednesday, a day after rising 3% to a one-week high, after the move by the U.S. and other consumer nations to release oil from strategic petroleum reserves (SPR) to try to cool the market fell short of some expectations.
The U.S. will release 50 million barrels of crude from its strategic reserves, while India reportedly adding another 5 million barrels from its emergency stockpiles and the UK contributing 1.5 million barrels. Announcements are also expected from China, Japan, and South Korea, which together could add anywhere between 10 million and 20 million barrels.
The Brent now traded at $82.27 per barrel, and U.S. crude futures traded at $78.65 per barrel.
Overnight, the Brent futures ends at $82.31 a barrel, and the WTI settled at $78.50 per barrel.
CURRENCIES
The dollar index was steady and remained close to its highest in 16 months, as investors ramped up expectations of interest rate hikes next year after Jerome Powell was renominated for a second term as Fed chair. The index traded flat at 96.554.
The benchmark 10-year U.S. Treasury yield last sat at 1.660%, compared with levels around 1.55% seen earlier in the week.
In central bank developments, the Reserve Bank of New Zealand announced its decision to raise the official cash rate to 0.75%. The New Zealand dollar was down 0.5% at $0.6903 following the announcement.
Next on the agenda in Asia is the Bank of Korea (BOK), which has its policy meeting Thursday.
The Turkish lira was steady on Wednesday after nosedived 15% overnight.
GOLD
Gold prices edged up on Thursday, although strength in the U.S. dollar and bets that the Federal Reserve could raise interest rates sooner kept the metal below the key $1,800 mark, close to Tuesday's two-week low.
Spot gold rose 0.20% to $1,783.30 per ounce. The U.S. gold futures added 0.53% to $1,793.20 per ounce.
Spot silver gained 0.43% to $23.53 per ounce. Platinum rose 1.47% to $978.40 and palladium jumped 2.10% to $1,889.00.
ECONOMIC OUTLOOK
Share markets were jittery in Asia on Wednesday as investors monitor moves in U.S. Treasury yields, as well as volatile oil prices in the face of price-cooling moves by the U.S. and other nations.
The resurgence in COVID-19 cases at the same time raised fears of tighter restrictions, dousing investor hopes of a quicker recovery in consumption and growth worldwide.
The reading of IHS Markit showed mixed signs in November. The IHS Markit has projected for the global real GDP to increase 5.5% in 2021 and moderate to 4.2% in 2022 — after a 3.4% decline in 2020.
In the U.S., the manufacturing Index rose more than expected to 59.1, the highest in two months. The Service sector Index fell unexpectedly to 57 from 58.7, against market consensus of 59.1, and the Composite PMI dropped from 57.6 in October to 56.5 in November, below the market consensus of 57.4.
The Eurozone manufacturing sector activity meanwhile improved more than expected in the reported month The manufacturing PMI arrived at 58.6 in November vs. 57.3 expectations, the Services PMI rose to three-month peaks of 56.6 in November vs. 53.5 expected, and the Composite index climbed to 55.8 in November vs. 53.2 estimated.
Japan's factory activity grew at the fastest pace in nearly four years in November, as output accelerated on loosening COVID-19 restrictions, defying pressure from the biggest jump in input prices in 13 years. The au Jibun Bank Flash Japan Manufacturing PMI rose to a seasonally adjusted 54.2, its fastest pace of expansion since January 2018. The = Services PMI Index improved to a seasonally adjusted 52.1 from the previous month's final of 50.7, and the Composite PMI rose to 52.5 from October's final of 50.7.
A slew of U.S. data, including jobless claims, growth and the Fed's preferred inflation measure, are due later on Wednesday ahead of the Thanksgiving holiday on Thursday. Investors will be scrutinising the minutes of the U.S. Federal Reserve policy committee's November meeting to be published later in the global day for signs that the pace of tapering could accelerate.
