EQUITIES
Asia-Pacific markets opened weaker on Tuesday. South Korea’s KOSPI led losses among the region’s major markets as it declined -1.72%. Mainland Chinese stocks was down -0.12%, and the Hang Seng index in Hong Kong slipped -0.25%. Bank stocks controversy added to the sharp declines of the index.
The S&P/ASX 200 dropped -0.60%, and Singapore’s edged lower to 0.67%. Japanese markets are closed for a public holiday Monday and Tuesday. Trading volumes are expected to be thin in Asian trading.
On Wall Street, the Dow Jones Industrial Average fell 1.84%, the S&P 500 lost 1.16%, and the Nasdaq Composite dropped 0.13%, closed Monday.
OIL
Oil rises as U.S. storm eases, after both oil benchmarks fell around 4% on Monday. Brent crude futures traded to $41.61 a barrel, while U.S. crude at $39.57.
On Monday, Brent closed at $41.44 per barrel, while WTI futures ended at $39.31 per barrel.
CURRENCIES
Against a basket of six major currencies, the greenback hit a six-week high and held just below that in early Asian trade at 93.53.
The Australian dollar last sat at $0.7226, just above a two-week low touched on Monday. The New Zealand dollar which fell 1.3% in the rout, nursed losses at $0.6675. The Norwegian krone, which was slammed 2% lower as oil prices slid, sat near a two-month low hit overnight.
GOLD
Gold fell against the rising dollar, currently trading at $1,911.00 per ounce, while stands around $1,916.90 per ounce for gold futures. Previously closed at $1,912.40 and $1,910.30, respectively.
Silver trading at $24.7, platinum trading at $881.00 and palladium trading at $2,170.00.
ECONOMIC OUTLOOK
Asian market started Tuesday on a weak note after the overnight fall on Wall Street as the most index traded in a narrow range in the absence of convincing catalysts to spur buying interest. The dip is on concerns over coronavirus restrictions, prospects for economic stimulus, and reports about financial institutions allegedly moving illicit funds.
Vietnamese banks’ total lending rose 4.81% as of Sept. 16 from the end of last year, the State Bank of Vietnam reported.
New pandemic measures in the UK set off declines in airline, hotel, and cruise companies in both European and U.S. markets, spurring fears about further restrictions.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 30.44 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 938 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.107 and 105.474.
- Support line of 103.918 and 103.550.
Commentary/ Reason:
- A resurgent dollar holds on to overnight gains on Tuesday against the safe-haven yen at 104.52. The yen slipped from a six-months high of 104.00 per dollar.
- The slip come as a sell-off in global equity markets sparked safe-haven buying of the yen. However, a plunge in global bond yields sparked short-covering in USD/JPY which recovered its losses and moved higher.
- The Japanese currency has been among the best performing majors this month as jitters in stock markets have driven safe-haven demand. The situation came as uncertainty over everything from the U.S. election to the global economic recovery had investors seeking safety, and as U.S. real yields sink lower.
