EQUITIES
Asia-Pacific markets were mostly higher on Thursday. The South Korea’s KOSPI index led the gains, adding 2.67%, followed by Nikkei 225 at 1.73%, and the Singapore’s Straits Times index that is 1.44% higher. The Hong Kong’s Hang Seng index rose 0.90%, and the Australia’s S&P/ASX 200 edged 0.40% higher.
Meanwhile, the Shanghai Composite retreated -0.09%, and India’s S&P BSE Sensex Index slipped -0.17% lower.
Stocks on Wall Street cruised to new record highs overnight, as the Dow Jones Industrial Average rose 0.69%, the S&P 500 gained 1.48% and the Nasdaq Composite added 2.56%.
OIL
Oil prices edged higher on Friday, sustained by Saudi pledge to expand production cuts. The Brent crude futures traded to $54.71 a barrel, while U.S. crude at $51.06.
Both benchmarks are on track for gains of about 5% for this week.
Oil hit 11-month highs overnight, as Brent closed at $54.38 per barrel, while WTI futures ended at $50.83 per barrel.
CURRENCIES
The dollar strengthened on hopes of economic recovery later this year. The index bounced to 89.82 but remains on track for a weekly decline.
The Australian dollar changed hands at $0.7762, having seen levels above $0.78 earlier this week. The New Zealand dollar little changed at $0.7257.
Bitcoin topped US$40,000 for the first time on Thursday, before fell more than 5% on Friday.
GOLD
Strength in the dollar weighed on gold prices. Gold spot edged lower, trading at $1,910.50 an ounce, while slipped around $1,912.70 per ounce for gold futures. Previously closed at $1,913.80 and $1,913.60, respectively.
Silver trading at $26.99, platinum trading at $1,115.00 and palladium trading at $2,316.00.
ECONOMIC OUTLOOK
Asian stocks opened higher on Friday, as investors looked beyond rising coronavirus cases and political unrest in the U.S. and bet on an economic recovery and more coronavirus relief aid later in the year.
The broadly upbeat mood came after Wall Street hit record highs overnight while bond prices fell. The markets bet that a new Democrat-controlled government would lead to heavy spending and borrowing to support the U.S. economic recovery.
The U.S. Congress confirmed the election of Joe Biden as president on Thursday, a day after supporters of Donald Trump invaded the U.S. Capitol.
The number of U.S. initial jobless benefits dipped last week, fell by 3,000 to 787,000 in the week ended Jan 2.
MSCI announced it will delete China Mobile, China Telecom and China Unicom Hong Kong from some of its indexes, after the NYSE made a U-turn to delist the Chinese telecom companies.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 87.98 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.896 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 104.200 and 104.596.
- Support line of 102.918 and 102.522.
Commentary/ Reason:
- The greenback steadying on Friday, after it touched a new weekly high of 103.998 earlier on the day. The pair last traded at 103.825 yen.
- USD/JPY rallied for a second day as a surge in COVID-19 infections in Japan forced the government to declare a state of emergency in Tokyo, which is negative for the yen.
- Japanese PM Yoshihide Suga declared a state of emergency in Tokyo and three other areas on Thursday in a bid to combat a rise in coronavirus infections.
