EQUITIES
Asian shares mostly traded lower. Hong Kong’s Hang Seng index leading the loss at -1.61%, mainland Chinese stock, the Shanghai composite loss -0.99%, and South Korea’s KOSPI down -1.34%. The Nikkei 225 retreated -0.61%, and Australia’s S&P/ASX 200 -1.02% lower. Singapore’s reverses early gain to settle around -0.15%.
Overnight on Wall Street, the Dow Jones Industrial Average rose 36.78 points, or 0.13%, to 28,032.38, the S&P 500 lost 15.71 points, or 0.46%, to 3,385.49 and the Nasdaq Composite dropped 139.86 points, or 1.25%, to 11,050.47.
OIL
Oil prices lower on Thursday. Brent crude futures traded to $41.80 a barrel, while U.S. crude at 39.66.
Oil prices jumped more than 4% on Wednesday, as U.S. stockpiles fall, following Hurricane Sally that forcing U.S. offshore production to shut. Brent closed at $42.22 per barrel, while WTI futures ended at $40.16 per barrel.
CURRENCIES
The dollar index rose against six major currencies to trade at 93.46.
The kiwi traded 0.5% below at $0.7267, after data showed New Zealand fell into its deepest slump on record. Chinese yuan in offshore trade was near the 16-month high of 6.769 per dollar after strong retail sales and industrial output data on Tuesday.
GOLD
Gold currently trading at $1,938.50 per ounce, while stands around $1,945.10 per ounce for gold futures. Previously closed at $1,958.80 and $1,970.50, respectively.
Silver trading at $26.80, platinum trading at $934.00 and palladium trading at $2,237.00.
ECONOMIC OUTLOOK
Asian shares were set to drift lower on Thursday, as investors react to overnight developments from the U.S. Federal Reserve.
The Fed said it would keep interest rates near zero until inflation is on track to 2% inflation target, with the aim of offsetting years of weak inflation and allowing the economy to add jobs for as long as possible.
New Zealand fell into its deepest recession on record in the Q2. The GDP contracted a seasonally adjusted 12.2% QoQ.
Australia’s jobs data release showed seasonally adjusted employment in Australia increasing by 111,000 people between July and August.
Official data showed that Singapore’s August non-oil domestic exports rose 7.7% YoY.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 29.76 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 939 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.472 and 105.723.
- Support line of 104.660 and 104.409.
Commentary/ Reason:
- The Japanese yen traded at 105.06 per dollar, a fraction below a nearly seven-week high marked overnight.
- As widely expected, the BOJ maintained its -0.1% short-term interest rate target and a pledge to cap 10-year government bond yields around zero.
- The BOJ also stress its readiness to work closely with the new government led by Yoshihide Suga, who has vowed to do whatever it takes to ease the economic blow from the coronavirus.
- Investors will now focus on what BOJ Governor Haruhiko Kuroda says at his post-meeting briefing on how the central bank will work with the new government to underpin the economy with its dwindling policy toolkit.
