EQUITIES

Asia-Pacific markets mixed on Wednesday. Australia’s S&P/ASX 200 led gains among the region’s major markets, jumping 2.13%. Mainland Chinese stocks were also fractionally higher, with the Shanghai composite rose 0.02%, and Hong Kong’s Hang Seng index gained 0.05%.

Meanwhile Singapore’s edged lower to -0.02%, and South Korea’s KOSPI declined -0.27%. Stocks in Japan reopen following a 2-day holidays. The Nikkei 225 slipped -0.37%.

Overnight, The Dow Jones Industrial Average rose 0.52%, the S&P 500 gained 1.05% and the Nasdaq Composite added 1.71%.

OIL

Oil prices slipped after surprise rise in U.S. crude inventories. Brent crude futures traded to $41.41 a barrel, while U.S. crude at $39.45.

On Tuesday, Brent closed at $41.72 per barrel, while WTI futures ended at $39.60 per barrel.

CURRENCIES

Against a basket of six major currencies, the greenback rose to 93.53, after hit an earlier high of 94.18, its strongest level since July after Chicago Federal Reserve President on Tuesday mentioned the prospect of raising interest rates, challenging an earlier Fed’s narrative to not hike rates at any point in the foreseeable future.

The Australian dollar at $0.7126, a six-week low on growing expectations the RBA may cut interest rates next month. The New Zealand dollar lower at $0.6616 after of policy decision by the country's central bank on Wednesday.

GOLD

Gold fell against the rising dollar, currently trading at $1,892.90 per ounce, while stands around $1,898.20 per ounce for gold futures. Previously closed at $1,900.10 and $1,907.60, respectively.

Silver trading at $24.01, platinum trading at $865.00 and palladium trading at $2,093.00.

ECONOMIC OUTLOOK

Asian stocks weak on Wednesday as it struggled to emulate Wall Street’s rebound overnight as persistent worries about the global economic recovery kept investors cautious, plus renewed U.S.-Sino tensions, which could weigh on investor sentiment.

Japan manufacturing PMI was at 47.3 in September compared with a final 47.2 in the previous month. Services PMI index rose to 45.6 from the previous month’s final of 45.0, the Composite PMI, which includes both manufacturing and services, edged up to 45.5 from a final 45.2 in August.

Australian retail sales fell 4.2% in August from the month earlier.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 31.48 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 968 thousand fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 105.272 and 105.548.

- Support line of 104.377 and 104.100.

Commentary/ Reason:

- The Japanese yen weakened versus the greenback at 105.07 per dollar. The dollar rising for second day in a row.

- In latest meeting, BOJ's Governor Kuroda says FX should move stably reflecting fundamentals. Kuroda also said that while the yen had strengthened recently, he did not discuss anything on exchange rates with PM Suga.

-  The U.S. dollar supported by positive U.S. economic data and concerns about a second wave of coronavirus infections in Europe and Britain.

-  A rally in stocks also curbed the safe-haven demand for the yen and boosted USD/JPY.