EQUITIES
Asian shares higher in Thursday afternoon trade, with South Korea’s KOSPI led the gain by 1.35%, followed by the Nikkei 225 at 1.41%. Mainland Chinese stocks, the Shanghai composite up 0.29% while the Hong Kong’s Hang Seng index fractionally 0.08%. Elsewhere, the S&P/ASX 200 in Australia, gained 0.94%, while Singapore’s down -0.43%.
A gauge of global stocks rallied about 1% to an intraday record on Wednesday as investors looked to improving economic data and U.S. congressional negotiations for more stimulus.
The DJIA rose 454.45 points, or 1.59%, to 29,100.11, the Nasdaq Composite added 116.78 points, or 0.98%, at 12,056.44, and the S&P 500 gained 54.13 points, or 1.53%, at 3,580.78. The climb marked the biggest daily percentage gain for the S&P since July 6 and the Nasdaq topping 12,000 for the first time. European stocks also snap a four-day streak of declines.
OIL
Oil price drops around 2%, reversing course as U.S. gasoline demand plunges, weekly government data showed. Brent crude futures traded to $44.41 a barrel, while U.S. crude at $41.61.
On Wednesday, Brent closed at $44.43 per barrel, while WTI futures ended at $41.51 per barrel.
CURRENCIES
The dollar strengthened against a basket of major currencies for a second straight day from lows of more than two years, was last at 92.807 following its bounce seen earlier this week.
The Australian dollar dipped to $0.7331 and the kiwi was a touch softer at $0.6764, though it has put up the toughest fight against the dollar's bounce and is only about 0.4% below a 13-month high touched on Wednesday.
GOLD
Gold currently trading at $1,944.80 per ounce, while stands around $1,950.30 per ounce for gold futures. Previously closed at $1,943.10 and $1,944.70, respectively.
Silver trading at $28.13, platinum trading at $938.00 and palladium trading at $2,154.00.
ECONOMIC OUTLOOK
Stocks in Asia Pacific rose in Thursday morning trade as investors reacted to economic data releases regionally.
China’s services sector activity expanding in August. The Caixin/Markit services PMI came in at 54.0, as compared to July’s reading of 54.1.
Trade data for July by the Australian Bureau of Statistics showed exports declining 4% month-on-month. Meanwhile import saw a 7% increase in July as compared to the previous month.
In oil market, both benchmark contracts fell more than 2% on Wednesday, with WTI sliding to its lowest close in nearly four weeks and Brent at its lowest since Aug. 21, after weekly government data showed that U.S. gasoline demand dropped to 8.78 million bpd from 9.16 million bpd a week earlier.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 26 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 867 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.407 and 106.591.
- Support line of 105.811 and 105.627.
Commentary/ Reason:
- The Japanese yen traded at 106.25 per dollar after weakening from levels around 106 against the greenback yesterday.
- The Japanese yen is gradually settling back towards where it was before Shinzo Abe resigned as Prime Minister as his close ally Yoshihide Suga firms as the favourite to succeed him.
- Suga formally declared his candidacy for the Liberal Democratic Party leadership on Wednesday and he is expected to persist with Abe's aggressive fiscal and monetary stimulus policies.
