EQUITIES
Asia-Pacific markets were mixed on Wednesday. The Hong Kong’s Hang Seng index leading the gains at 1.74% higher, while the mainland Chinese stocks, the Shanghai composite was at 1.03% higher. The Australia’s S&P/ASX added 0.50%, and the KOSPI index rose 0.11%. Meanwhile, Japan’s Nikkei 225 slipped -0.13%, the Singapore’s Straits Times index down -0.13%, and the India’s S&P BSE Sensex index at -0.46% lower.
Overnight on Wall Street, the Nasdaq remained in positive territory, to a record high on a gain of 0.14%. While both the Dow Jones Industrial Average and S&P 500 closed slightly lower, to put a brake on a 6-day winning streak.
OIL
Oil prices remained resilient with the Brent crude now firmly above the $60. The Brent crude futures traded to $61.07 a barrel, while U.S. crude at $58.27.
On Tuesday, the Brent close at $61.09, while WTI futures ended at $58.36 per barrel. Both benchmarks were at the highest since January 2020.
CURRENCIES
The dollar index against a basket of currencies was at 90.40 on Wednesday, not far from its 1-month low following a two-day loss.
The Australian dollar changed hands at $0.7737 following its rise from levels around $0.765 earlier this week, while the New Zealand shed 0.11% to $0.7232.
Oil-exporting countries peer currencies traded well on continued buying interest, supported by higher oil prices. A robust credit demand expectation for January lifted yuan in China.
Bitcoin pulled back from a record it reached after Tesla Inc. bought US$1.5 billion of the cryptocurrency. Ethereum, the second-most-popular cryptocurrency, hit a record high of $1,826.
GOLD
Gold was steady after climbing for three straight day as the U.S. dollar faltered. The bullion rose to trade at $1,843.10 per ounce, while added around $1,844.60 per ounce for gold futures. Previously closed at $1,837.80 and $1,837.50, respectively.
Silver trading at $27.40, while platinum trading at $1,203.00 and palladium trading at $2,250.00.
ECONOMIC OUTLOOK
Asian stocks inched higher on Wednesday, as upbeat Wall Street earnings and optimism about a global recovery and a strong earnings season supported sentiment, although concerns about the sustainability of a recent reflation trade risk are likely to cap gains.
Investors awaited further news on the proposed $1.9 trillion U.S. stimulus plan, while Senate voted to move ahead with Donald Trump’s impeachment trial on a charge of inciting the deadly assault on the Capitol.
China’s CPI declined 0.3% in January as compared with a year ago, while the PPI rose 0.3%.
U.S. crude inventories fell by 3.5 million barrels in the week to Feb. 5 to about 474.1 million barrels, data from the API showed. Oil hit 13-month highs.
Among important key event coming up Wednesday including the EIA crude oil inventory report, the U.S. CPI and the Federal Reserve Chair Jerome Powell will speak on a webinar later.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 106.902 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.340 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.528 and 105.518.
- Support line of 104.292 and 104.002.
Commentary/ Reason:
The dollar traded at 104.583 yen on Wednesday, little changed on the day after a 0.63% fall on the previous session, its biggest drop in three months.
The dollar had sunk as optimism over monetary and fiscal support from policymakers, robust corporate earnings, and the prospect that coronavirus vaccines could hasten a return to normality in the U.S have bolstered risk sentiment.
Japan’s economic data also had given the yen a boost. Its 10-year Japan JGB government bond yield rose to a 10-month high, while the machine orders rose for the third consecutive month.
Meanwhile earlier on Wednesday, the Japanese Prime Minister Yoshihide Suga said that the country would begin COVID-19 vaccinations from the middle of next week.
