EQUITIES

Asia-Pacific markets traded mixed on Monday. The Hong Kong’s Hang Seng index led the drop, down -1.69%, followed by Japan’s Nikkei 225 at -0.68% lower, the Shanghai Composite at -0.66%, and Singapore’s Straits Times index slipped -0.12%.  Meanwhile, South Korea’s KOSPI gains 0.26%, and the Australia’s S&P/ASX 200 advanced 0.60%.

On Wall Street, stock indexes reached fresh all-time highs on Friday with the Dow rising 0.8%, the S&P 500 gaining 0.9% and the Nasdaq adding 0.7%.

OIL

Oil prices fell on surging virus cases. The Brent crude futures traded to $49.04 a barrel, while U.S. crude at $46.04.

On Friday, Brent closed at $49.25 per barrel, while WTI futures ended at $46.26 per barrel.

CURRENCIES

U.S. dollar traded at 90.74 against a basket of its peers. The dollar index fell from levels near 91.80 last week.

The Australian dollar traded up 0.08% at $0.7427. The offshore yuan stood at 6.5361 per dollar, just shy of its 2 1/2-year high of 6.5070 set on Friday.

GOLD

Gold rose on hopes for a vaccine-led economic recovery. Spot gold currently trading at $1,838.70 per ounce, while stands around $1,842.20 per ounce for gold futures. Previously closed at $1,838.10 and $1,840.00, respectively.

Silver trading at $24.08, platinum trading at $1,033.00 and palladium trading at $2,220.00.

ECONOMIC OUTLOOK

Asia-Pacific markets reverses earlier gains and lost steam mid-morning on Monday, after report that the U.S. was preparing to impose sanctions on at least a dozen Chinese officials highlighted geopolitical tensions. The markets had initially started on a positive note on hopes of a faster global recovery as coronavirus vaccines get rolled out, starting this week in Britain.

A bipartisan group of Democrats and Republicans proposed a compromise $0.9 trillion package that leaders on both sides appear open to agreeing to.

Oil prices fell on continued surge in coronavirus cases globally forced a series of renewed lockdowns, including strict new measures in Southern California in the United States, the world’s top oil consumer.

Friday's U.S. jobs data showed non-farm payrolls increased by 245,000 last month, the smallest gain since May, much lower than expectations for a 469,000 increase.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 67.063 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.536 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 104.556 and 104.898.

- Support line of 103.447 and 103.104.

Commentary/ Reason:

- The Japanese yen changed hands at 104.01 against the greenback, strengthening from an earlier level around 104.23.

- USD/JPY on Monday posted -0.14% decline as the yen strengthened on expectation of new economic stimulus package early this week, as announced by the Prime Minister Suga on Friday, adding that green and digital initiatives would be core to the recovery from the coronavirus pandemic.

- The dollar also retreated on concern on renewed lockdowns in Southern California over surging COVID-19 infections will lead to more restrictions that undercut economic growth.