EQUITIES
Asian shares lower Friday following Wall Street tech tumble yesterday, with no obvious catalyst for the drop. Stocks in Australia led losses among the major markets regionally, as the S&P/ASX 200 declined -3.05%. Mainland Chinese stocks also fell as the Shanghai composite dropped -1.38% while the Hong Kong’s Hang Seng index slipped -1.79%. South Korea’s KOSPI dropped by -1.58%, followed by Singapore’s and the Nikkei 225 at -1.48% and -1.21%, respectively.
The Dow Jones Industrial Average fell 807.77 points, or 2.78%, to close at 28,292.73, the S&P 500 lost 125.78 points, or 3.51%, to 3,455.06 and the Nasdaq Composite dropped 598.34 points, or 4.96%, to 11,458.10.
While S&P and Nasdaq’s percentage declines on Thursday were their deepest since June 11, it was the Dow’s biggest one-day plunge since June 26.
OIL
Oil prices slipped on Friday, on track for a weekly loss. Brent crude futures traded to $43.67 a barrel, while U.S. crude at $40.95.
On Thursday, Brent closed at $44.07 per barrel, while WTI futures ended at $41.37 per barrel.
CURRENCIES
The dollar index against a basket of six major currencies was little changed in Asia on Friday at 92.82.
The risk-sensitive Australian dollar fell 0.1% to a one-week low of $0.7251, while the New Zealand dollar also slipped.
GOLD
Gold currently trading at $1,936.30 per ounce, while stands around $1,944.30 per ounce for gold futures. Previously closed at $1,931.20 and $1,937.80, respectively.
Silver trading at $26.67, platinum trading at $889.00 and palladium trading at $2,198.00.
ECONOMIC OUTLOOK
Asia’s stock markets slipped on Friday, following the steepest Wall Street selloff since June, with deeper worries that the fall might turn into a greater beat, with a crucial U.S. payrolls report due later seen as possible selling trigger if it disappoints.
Australia’s retail turnover rose 3.2% on a seasonally adjusted basis in July, according to figures released Friday from the Australian Bureau of Statistics.
Oil prices slipped, on track for a weekly loss, as investors’ focus shifted to flat demand and ample fuel supplies, offsetting support from a weak dollar.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 26.472 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 873 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.574 and 106.809.
- Support line of 105.814 and 105.579.
Commentary/ Reason:
- The safe-haven Japanese yen changed hands at 106.183 per dollar after it strengthened yesterday.
- Prime Minister candidate Suga promised to maintain outgoing Prime Minister Abe's ultra-easy monetary policies.
- USD/JPY also found support on comments from BOJ Board member Kataoka, who said Thursday that the BOJ needs to show resolve to stop price declines and that "aggressive bond-buying to lower interest rates is appropriate."
