EQUITIES
Asia-Pacific markets were mostly lower on Monday, except for Chinese mainland stocks that edged higher on the nation’s better economic data. The Hong Kong’s Hang Seng index at advanced 0.49%, and the Shanghai composite rose 0.70%.
Meanwhile, the South Korea’s KOSPI led the losses, shedding -1.59%, followed by the Nikkei 225 that slipped -1.08%. The Singapore’s Straits Times index retreated -0.73%, the Australia’s S&P/ASX down -0.76%, and the India’s S&P BSE Sensex Index -0.86% lower.
Markets in the U.S. are closed on Monday for a Martin Luther King Day holiday.
OIL
Oil prices ran into profit-taking on worries the spread of increasingly tight lockdowns globally. The Brent crude futures traded to $54.58 a barrel, while U.S. crude at $51.95.
On Friday, the Brent closed at $55.10 per barrel, while WTI futures ended at $52.36 per barrel.
CURRENCIES
The U.S. dollar strengthened to its highest in four weeks against rival currencies. Now rallied to 90.84.
The risk-sensitive Australian dollar slipped 0.3% to a 1-week low of $0.7682. The New Zealand dollar eased 0.1% to a 3-week low of $0.7120. The Canadian dollar eased to $1.2773 per dollar after Reuters reported Biden planned to revoke the permit for the Keystone XL oil pipeline.
GOLD
Gold prices at 1½-month low, undermined by the bounce in the dollar, trading at $1,828.40 an ounce, while slipped around $1,827.80 per ounce for gold futures. Previously closed at $1,828.60 and $1,829.90, respectively.
Silver trading at $24.89, platinum trading at $1,078.00 and palladium trading at $2,275.00.
ECONOMIC OUTLOOK
Asian stocks declined regionally, retreated from highs on Monday along with U.S. equity futures as investors greeted the week with a lack of risk appetite and on doubts about how much of U.S. President-elect Joe Biden's stimulus package will make it through Congress given Republican opposition, and the risk of more mob violence at his inauguration on Wednesday.
Mainland Chinese stocks were higher in mid-morning trade, as investors in the region reacted to Chinese economic data releases. China reported its GDP growth expanded 6.5% YoY in the Q4, rose 2.3% in 2020, and industrial output rose 7.3% YoY, while the retail sales declined, contracting 3.9% for the year.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 95.037 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.03 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:
Japanese yen edged higher as softening U.S. economic data and rising global coronavirus cases kept investors cautious. The yen rose around 0.1%, to trade at 103.728 per dollar on Monday.
The pair, however, were mostly held down as the greenback strengthening as a safe-haven demand for the currency among investors kicked in.
Traders are taking a little more of a wait-and-see approach, awaiting about a foreign policy pivot following U.S. President-elect Joe Biden’s inauguration this week.
