The S&P 500 and NASDAQ both gained more than 1% last week, snapping a three-week losing streak. The market rally on Friday was fuelled by a slowing in wage growth and the addition of 223,000 new jobs in December, both of which alleviated inflationary concerns. The US economy added 4.5 million jobs in 2022, the second-highest annual total on record. While analysts have reduced their earnings forecasts for Q4, S&P 500 companies will pay out a record $565 billion in dividends in 2022, up 11% from the previous year. The Consumer Price Index report due out this week will reveal whether the moderation in inflation continued into December. According to historical data, the market's performance in January may foreshadow the trend for the rest of the year.

Equity

Attention is on TSMC's earnings as the chipmaking giant is expected to report a 6% increase from the previous quarter. Japanese Prime Minister Kishida is meeting with G7 leaders this week ahead of the May summit to discuss, among other things, semiconductors.

GOLD

Gold prices surged to a seven-month high on anticipation for a lower U.S. inflation reading this week and a shift in the Federal Reserve's hawkish tone following the release of Labour Department data showing nonfarm payrolls expanded at the slowest pace in a year in December.

OIL

China's reopening of its borders is helping to boost the outlook for fuel demand growth and offset concerns about a global recession. Doubts remain that the massive flow of Chinese travellers may cause another surge in COVID-19 infections, which could impact oil prices.

CURRENCY

The Chinese yuan hit a four-month high after the country reopened its international borders. The prospect of less hawkish rhetoric from the US Federal Reserve also weighed on the dollar and supported Asian currencies. Despite this, traders remained cautious over China due to its worst-ever COVID-19 outbreak.