EQUITIES
Asia-Pacific markets were mixed on Friday. The South Korea’s KOSPI led the losses, shed -1.28%, followed by the Shanghai composite that slipped -0.53%, and the Nikkei 225 by -0.10% lower.
Meanwhile, the Singapore’s Straits Times index rose 0.36%, the Australia’s S&P/ASX gains 0.21%, the Hong Kong’s Hang Seng index at 0.51% higher, and fractionally added, about 0.03% to the India’s S&P BSE Sensex Index.
Overnight on Wall Street, the Dow Jones Industrial Average fell 0.22%, the S&P 500 lost 0.38%, and the Nasdaq Composite dropped 0.12%.
OIL
Oil prices were largely flat on Friday as investors weighed between the strong import data from China and drawdown in U.S. crude inventories against surging coronavirus cases and lockdowns in the Europe and China. The Brent crude futures traded to $56.24 a barrel, while U.S. crude at $53.59.
Overnight, the Brent closed at $56.42 per barrel, while WTI futures ended at $53.57 per barrel.
GOLD
The safe haven trading higher, at $1,851.20 an ounce, while slipped around $1,851.30 per ounce for gold futures. Previously closed at $1,846.60 and $1,851.40, respectively.
Silver trading at $25.55, platinum trading at $1,101.00 and palladium trading at $2,293.00.
ECONOMIC OUTLOOK
Shares in Asia-Pacific were mixed in Friday trade as investors reacted to President-elect Joe Biden’s much anticipated US$1.9 trillion COVID-19 relief plan and extended bets on global recovery and growth.
U.S. Treasuries, which had climbed overnight after some reassurances that the U.S. Federal Reserve would keep buying bonds, were sold again on the stimulus package report, as question on how the United States will pay for it all were raised.
Federal Reserve Chair Jerome Powell said the U.S. central bank is not raising interest rates anytime soon and rejected suggestions the Fed might start reducing its bond purchases in the near term.
U.S. initial unemployment benefits claims increased 181,000 to a seasonally adjusted 965,000 for the week ended Jan 9.
Attention also on the corporate earnings with results from JPMorgan, Citigroup and Wells Fargo scheduled for Friday.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 93.051 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.993 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
Resistance line of 104.323 and 104.570.
Support line of 103.526 and 103.280.
Commentary/ Reason:
The dollar was mostly flat at 103.793 yen after slipping about 0.1% overnight.
Traders as of now are taking a little more of a wait-and-see approach, awaiting for more details on the latest U.S. relief package.
In its quarterly report on regional economies, the BoJ upgraded its assessment on factory output for all nine areas for the first time since 2009, a sign robust demand for goods was offsetting some of the pain from weak service-related spending.
The upbeat view reinforces market expectations the BoJ will hold off expanding stimulus at next week's rate review.
Also, Japanese PM Suga was advised to consider expanding the COVID-19 state of emergency to cover the entire country.
