EQUITIES
Asia-Pacific shares were largely higher in Wednesday trade as investors continue to assess Omicron risks. In Japan, the Nikkei 225 sat 0.17% higher, paring earlier gains. South Korea’s KOSPI gained 0.30%, and the S&P/ASX 200 in Australia added 0.12%.
Hong Kong’s Hang Seng index gained about 0.43%, paring earlier gains of more than 1%. The Shanghai composite was flat, the S&P BSE Sensex in India advanced 0.69% and in Southeast Asia, the Singapore’s Straits Times index added 0.10%.
Overnight on Wall Street, the Dow Jones Industrial Average rose 1.6%, to 35,492.7, the S&P 500 gained 1.78%, to 4,649.23 and the Nasdaq Composite added 2.4%, to 15,341.09.
OIL
Oil prices rose for a second day on Wednesday as the dollar slipped, with risk appetite returning as some governments resist imposing lockdowns to curb the spread of the Omicron COVID-19 variant.
The Brent now traded at $74.16 per barrel, and U.S. crude futures traded at $71.42 per barrel.
Overnight, the Brent futures ends at $73.98 a barrel, while the WTI crude oil prices closed to $71.12 per barrel.
CURRENCIES
The dollar edged down for a third session, under pressure as investors favoured riskier currencies and asset classes. The dollar index, which measures the currency against major peers, was down at 96.544.
The yield on benchmark 10-year Treasury notes was at 1.467% compared with its U.S. close of 1.487% on Tuesday.
Investors also monitored the Turkish lira following its recent wild swings after the country’s president announced a plan to support the currency and protect local deposits against market moves. The lira was last at 12.3853 per dollar, still much stronger than the record low seen earlier this week when the currency was above the 18 level against the greenback.
Bitcoin was largely steady around the $49,000 after a 4% gain on Tuesday. Ether, the world's second-largest cryptocurrency, has also been gaining this week and was last just above $4,000.
GOLD
Spot gold was traded little changed at $1788.20 per ounce. U.S. gold futures was at $1,788.90.
Spot silver flat at $22.53 an ounce, platinum slipped 0.18% to $926.10, and palladium edged 0.13% higher to $1,795.50.
ECONOMIC OUTLOOK
Asian stocks were gaining ground on Wednesday as the risk appetite of global investors rises heading into year-end, despite the surging number of Omicron variant cases around the world.
Investors are optimistic that Omicron will not derail the country's economic recovery, though the rapidly spreading coronavirus variant has rattled global equity markets in recent weeks. The U.S. President Joe Biden on Tuesday said that people with booster shots are “highly protected”, brushing off concerns over the Omicron Covid-19 variant.
Technology shares in Asia rose following a sharp rebound in by their U.S. counterparts overnight, with the Nasdaq Composite jumping 2.4% to 15,341.09.
In Hong Kong, shares of Chinese tech giants pared earlier gains but remained in positive territory. Alibaba was up 0.45% while Tencent gained 0.86% and Meituan advanced 1.75%. The Hang Seng Tech index traded 0.98% higher. Over in Japan, Softbank Group’s stock gained 0.87% while South Korea-listed shares of chipmaker SK Hynix climbed 1.61% and Kakao Games added 3.17%.
