EQUITIES

Asia-Pacific markets mostly lower on Asian afternoon trade. Japan’s Nikkei 225 dipped to -0.15%, mainland Chinese stock, the Shanghai composite down about 0.72%, the South Korea’s KOSPI shed -0.39%, Singapore’s Straits Times index down -0.10%, and Australia’s S&P/ASX 200 declined -0.08%.

The Hong Kong market is closed on Monday for a holiday.

OIL

Oil prices fell on Monday, falling nearly 2%, extending last week's losses, as a spike in COVID-19 infections in the United States and Europe raised alarms over crude demand, while the prospect of increased supply by Libya also hurt sentiment.

Brent crude futures traded to $41.02 a barrel, while U.S. crude at $39.09.

On Friday, Brent closed at $41.77 per barrel, while WTI futures ended at $39.85 per barrel.

CURRENCIES

Against a basket of currencies, the U.S. dollar index trod water in the Asia session, after having fallen almost 1% last week. Last stand a fraction firmer at 92.91.

GOLD

Gold hits over one-week low. Spot gold currently trading at $1,896.90 per ounce, while stands around $1,898.70 per ounce for gold futures. Previously closed at $1,901.30 and $1,905.20, respectively.

Silver trading at $24.27, platinum trading at $884.00 and palladium trading at $2,260.00.

ECONOMIC OUTLOOK

Asian stocks were set for cautious gains on Monday as surging coronavirus cases in Europe and the U.S. threaten the economic outlook, plus with the standoff on a U.S. stimulus package. Nevertheless, growth in China provides some support to Asia.

Developments out of China were watched, as the country’s top leaders meet this week to plan for the next five years. The meeting seeks to balance growth and reforms amid an uncertain global outlook and deepening tensions with the U.S.

U.S. House Speaker Nancy Pelosi said on Sunday that she expected a White House response on Monday regarding the latest stimulus spending plan.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 42.99 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.153 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 105.556 and 106.007.

- Support line of 104.096 and 103.645.

Commentary/ Reason:

- The Japanese yen slipped a fraction on the firmer dollar to 104.90 per dollar.

- The dollar was still pinned around the range for the week, and not far from last week's trough of 104.32, its largest weekly drop against the yen in a month. USD/JPY moved lower Friday as the yen strengthened on positive Japanese economic data last week. Japan’s data showed the Japan’s manufacturing PMI and national CPI rose.

- Focus Monday is on the deteriorating coronavirus situation in the West, with the U.S. recently reporting a record-breaking number of new COVID-19 cases, seeing its highest ever number of new COVID-19 cases in the past two days.

- Response on the latest U.S. stimulus deal also being awaited for the day.