EQUITIES

Asia-Pacific markets saw losses on Thursday. South Korean stocks led losses among major markets in the region as tensions on the Korean peninsula reignited. South Korea’s KOSPI declined -1.90%, followed by mainland Chinese stocks, the Shanghai composite by -1.46% lower, and the Hong Kong’s Hang Seng index that slipped -1.79%. In Japan, the Nikkei 225 fell 0.67%, Singapore’s FTSE STI down -1.18%, while in Australia, the S&P/ASX 200 dropped 1.10%.

On Wednesday, the Dow Jones Industrial Average fell 1.92%, the S&P 500 lost 2.37% and the tech heavy Nasdaq Composite dropped 3.02%. The Nasdaq has fallen around 10% so far this month as investors rotate out of the sector. Big Tech stocks like Facebook, Amazon, Apple, Netflix, Alphabet and Microsoft are all down at least 11% in September.

OIL

Oil prices were lower in the morning of Asian trading hours, as investors rally to dollar. Brent crude futures traded to $41.36 a barrel, while U.S. crude at $39.42.

On Wednesday, Brent closed at $41.77 per barrel, while WTI futures ended at $39.93 per barrel.

CURRENCIES

The dollar index DXY, against a basket of six major currencies, stood at 94.41 on Thursday, close to a nine-week high.

The Australian and New Zealand dollars are watched, which have come under pressure due to growing expectations for additional monetary easing. The AUD traded at $0.7055, near its weakest since July 21, and the NZD bought $0.6536 after tumbling by 1.3% in the previous session.

GOLD

Spot gold continued its slide this week, down another 2% to a two-month low, currently trading at $1,855.00 per ounce, while stands around $1,860.80 per ounce for gold futures. Previously closed at $1,863.00 and $1,968.40, respectively.

Silver trading at $22.16, platinum trading at $838.00 and palladium trading at $2,110.00.

ECONOMIC OUTLOOK

Stocks in Asia Pacific traded lower on Thursday morning, with technology stocks taking a hit following overnight drop on Wall Street session amid fresh concerns that the global economic recovery is a long windy road.

Oil futures fell on concerns the economic recovery in the U.S. is slowing as the coronavirus outbreak lingers and a resurgence in European cases led to new travel restrictions there.

Some BOJ board members warned a resurgence in the coronavirus pandemic could delay an economic recovery and destabilize its banking system by pushing more companies under, minutes from the bank’s July rate review showed on Thursday.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 31.78 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 975 thousand fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

-  Resistance line of 105.619 and 105.867.

-  Support line of 104.817 and 104.569.

Commentary/ Reason:

- The dollar at 105.44 yen, holding onto a 0.4% gain from the previous session.

- Some BOJ board members warned a resurgence in the coronavirus pandemic could delay an economic recovery and destabilise its banking system by pushing more companies under, minutes from the bank’s July rate review showed on Thursday.

- BOJ Governor Kuroda also pledged policy coordination with new PM Suga, which signals the BOJ ultra-easy monetary policy will continue.