EQUITIES
Asia-Pacific markets mostly higher, except for Japan’s Nikkei 225 that retreated -0.20%. Stocks in mainland China jumped after a week-long holiday, helped by latest PMI data. The Shanghai composite surged 1.89%. Over in Hong Kong, the Hang Seng index advanced 0.18%. Australia’s S&P/ASX 200 at rose 0.13%, and Singapore’s Straits Times index fractionally moved 0.02% higher.
Markets in South Korea and Taiwan are closed on Friday for holidays.
Overnight stateside, the Dow Jones touched its highest level in a month, closed 122.05 points higher, or 0.4%, at 28,425.51. The S&P 500 gained 0.8% to end its trading day at 3,446.83 while the Nasdaq Composite added 0.5% to close at 11,420.98.
OIL
Oil prices were lower on Friday. Brent crude futures traded to $43.18 a barrel, while U.S. crude at $41.04.
On Thursday, Brent closed at $43.34 per barrel, while WTI futures ended at $41.19 per barrel.
CURRENCIES
The U.S. dollar index was at 93.45 after seeing levels around 93.9, down 0.4% for the week.
The Australian dollar changed hands at $0.7176, bouncing from levels below $0.712 for the week. The New Zealand dollar recouped Thursday losses made after another dovish signal from RBNZ and was last up at $0.6608. Chinese yuan soared to a 17-month high of 6.789 per dollar. The Canadian dollar set for its best weekly rise in more than 2-months, to C$1.3191 per dollar.
GOLD
Spot gold currently trading at $1,910.10 per ounce, while stands around $1,915.50 per ounce for gold futures. Previously closed at $1,893.90 and $1,895.10, respectively.
Silver trading at $24.25, platinum trading at $868.00 and palladium trading at $2,292.00.
ECONOMIC OUTLOOK
Asian shares mounting to 2-1/2-year highs on Friday as revived hopes for a U.S. stimulus deal back. Investors are also increasingly expecting the Democrats to take back the White House, and possibly the Senate as well, in the upcoming Nov. 3 U.S. election.
Latest U.S. weekly jobless claims data showed a weaker-than-expected jobs data as additional 840k Americans filed for unemployment benefits for the first time, showing unemployment in the world’s largest economy remains historically high and a recovery in the labour market is losing momentum.
China’s Caixin/Markit services PMI for September came in at 54.8, now increased for five straight months,
Japan’s household spending fell for an 11th straight month, declined 6.9% in August from a year earlier.
WHO reported a record 1-day increase in global coronavirus cases on Thursday, led by a surge of infections in Europe, surpassing 36.444 million affecting 213 countries and territories around the world, recording more than 1.06 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 106.146 and 106.233.
- Support line of 105.864 and 105.777.
Commentary/ Reason:
- The safe-haven Japanese yen was higher at 105.854 as the dollar slipped 0.15% on Friday.
- The dollar drifted lower as investors wagered on a Joe Biden presidency.
- A growing expectation of U.S. stimulus approval has also been weakening the dollar in the short term, by improving investors’ mood and their willingness to buy riskier assets such as stocks and commodity currencies.
- The yen also garnered support from Thursday's economic data that showed the Japan Sep eco watchers expectations outlook survey rose +5.9 to a 1-1/2 year high of 48.3.
