EQUITIES
Asia-Pacific markets higher on Monday, with Australia’s S&P/ASX 200 led the gain among the region’s major markets at 2.48%. Japan’s Nikkei 225 rose 1.24%, the South Korea’s KOSPI advanced 1.18%, Singapore’s Straits Times index 0.52% higher, and Hong Kong’s Hang Seng index rose 1.46% in early trade following its return to trade from holidays last week.
Markets in China are still closed until Friday for a holiday.
OIL
Oil prices rose about 2% on Monday, after positive development on President Trump’s COVID-19 condition. Brent crude futures traded to $40.13 a barrel, while U.S. crude at $38.
On Friday, Brent closed at $39.27 per barrel, while WTI futures ended at $37.05 per barrel.
CURRENCIES
The dollar index was little changed at 93.74, as traders adjusted their positions in safe-harbour currencies, responding to Trump’s COVID-19 developments.
The Australian dollar changed hands at $0.7179 after its rise last week from levels below $0.707.
GOLD
Gold was little changed, currently trading at $1,892.50 per ounce, while stands around $1,898.50 per ounce for gold futures. Previously closed at $1,998.80 and $1,907.60, respectively.
Silver trading at $23.75, platinum trading at $871.00 and palladium trading at $2,203.00.
ECONOMIC OUTLOOK
Stocks in Asia-Pacific traded strong on Monday morning as coming development that President Trump could be discharged from hospital later in the day, easing some of the political uncertainty that shook global market in the previous session.
Japan's September service sector PMI rose to its highest in eight months, coming in at a seasonally adjusted 46.9 from 45.0 in the previous month, suggesting conditions were moving closer to stabilisation, though still below the 50-points neutral level.
U.S. House Speaker Nancy Pelosi on Sunday said progress was being made on coronavirus relief legislation.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 35.078 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.036 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.636 and 105.735.
- Support line of 105.315 and 105.215.
Commentary/ Reason:
- The U.S. dollar rose 0.23% to 105.55 yen on Monday after making its sharpest fall reaching a one-week low of 104.95 on Friday last week.
- The dollar edged higher against the yen as traders jockeyed for position ahead of what could be a volatile day in global markets.
- Nevertheless, as there is an increase in risk appetite and rise in Asian’s markets early trading day, a fall may be expected later, though the yen sentiment is also weak.
