EQUITIES
Asian shares firmed on Monday trade. The South Korea’s KOSPI led the gain jumped 1.09%. In Japan, the Nikkei 225 rose 0.67% in afternoon trade while Australia’s S&P/ASX 200 added about 0.43% higher. Mainland Chinese stocks were also higher by the afternoon, with the Shanghai composite up 0.56%, and Hong Kong’s Hang Seng index rose 0.67%. Only Singapore’s lower at -0.04%.
OIL
Oil prices higher on Monday, though still below $40 mark. Brent crude futures traded to $39.95 a barrel, while U.S. crude at 37.57.
On Friday, Brent closed at $39.83 per barrel, while WTI futures ended at $37.33 per barrel.
CURRENCIES
The dollar's index against a basket of currencies stood little changed at 93.20, with focus on the Federal Reserve's policy announcement on Wednesday. Major currencies were treading water on Monday.
The Australian dollar was at $0.7281 after rising from levels below $0.725 last week.
GOLD
Gold prices rose on Monday, supported by a weaker dollar and expectations that the U.S. Federal Reserve will adopt a dovish stance at its two-day monetary policy meeting later this week. Gold currently trading at $1,946.50 per ounce, while stands around $1,954.40 per ounce for gold futures. Previously closed at $1,940.10 and $1,947.90, respectively.
Silver trading at $26.61, platinum trading at $919.00 and palladium trading at $2,161.00.
ECONOMIC OUTLOOK
Stocks in Asia Pacific rose in Monday trade, with bump on Japan’s Softbank Group and gains in U.S. stock futures, in addition to COVID-19 vaccine hopes after AstraZeneca resumed its trials.
Offshore platforms and one refinery along the U.S. Gulf Coast shut down on Sunday as US Gulf Coast prepared for a second hurricane strike in less than a month. U.S. Gulf of Mexico offshore oil production makes up about 17% of U.S. crude oil and 5% of U.S. natural gas output.
China's new home prices growth steady. Average new home prices in 70 major cities climbed 0.6% in August from a month earlier, a touch better than a 0.5% increase in July, based on data released by the National Bureau of Statistics on Monday.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 29 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 928 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.240 and 106.371.
- Support line of 105.978 and 105.847.
Commentary/ Reason:
- The Japanese yen traded at 106.03 against the greenback, following an earlier low of 106.19 per dollar.
- The pair were little changed and stuck in its familiar territory in the past couple of weeks.
- Japanese shares inched higher on Monday as investors awaited election results for the country's ruling party to choose a successor to Prime Minister Shinzo Abe, Japan’s Chief Cabinet Secretary Yoshihide Suga is widely seen as the front-runner to succeed.
