EQUITIES
Asia-Pacific markets were higher on Monday. The Nikkei 225 led the advance at 1.73% higher, followed by the KOSPI index that rose 1.64%. The India’s S&P BSE Sensex index added 1.08%, the Australia’s S&P/ASX gains 0.91%, and the Singapore’s Straits Times index at 0.37% higher.
Markets in China, Hong Kong and Taiwan were closed for the Lunar New Year holiday on Monday, with the U.S. also out for Presidents Day.
On Friday, the S&P 500 and Nasdaq set record closing highs. The Dow finished 0.1% higher at 31,458.4 points, the S&P 500 gained 0.5% to 3,934.83 and the Nasdaq added 0.5% to 14,095.47.
OIL
Oil prices stood higher on heightened tensions in the Middle East. The Brent crude futures traded to $63.56 a barrel, while U.S. crude at $60.88.
On Wednesday, the Brent close at $62.43, while WTI futures ended at $59.47 per barrel. The crude had rose for the ninth day, its longest winning streak in two years.
CURRENCIES
The U.S. dollar were lower amid surging oil prices. The index, which tracks the greenback against a basket of its peers, was at 90.30, close to last week’s low of 90.249.
The risk sensitive Australian and New Zealand dollars advanced against the dollar, rose around 0.40%. Oil-exporting countries peer currencies traded well on continued buying interest, supported by higher oil prices.
Bitcoin pulled back from a record high on Monday and other cryptocurrencies slipped, as investors took profits.
GOLD
Gold dips on rising U.S. yields. Down to trade at $1,822.80 per ounce, while shed around $1,822.40 per ounce for gold futures. Previously closed at $1,824.30 and $1,823.20, respectively.
Silver trading at $27.60, while platinum scaling a 6-year peak on expectations of a supply shortfall, trading at $1,276.00 and palladium trading at $2,316.00.
ECONOMIC OUTLOOK
Asian shares started the year of the Ox advanced to record highs on Monday and oil rose to a more than 1-year on optimism in corporate earnings and the rollout of coronavirus vaccines globally raise hopes of a rapid economic recovery amid new fiscal aid from Washington.
The U.S. EIA had recently lifted its 2021 and 2022 estimates for the WTI and Brent crude oil prices. The 2021 and 2022’s WTI oil price forecasts to US$50.21 a barrel and U$51.56 per barrel, respectively. The EIA also raised its Brent crude price projections to U$53.20 for 2021 and to U$55.19 for 2022.
Japan’s GDP grows 12.7% on an annualized basis in October to December last year.
U.S. President Joe Biden will hold his first event with other leaders from the G7 nations in a virtual meeting on Friday to discuss the coronavirus pandemic, the world economy and dealing with China.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 108.803 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.399 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 rose 0.12% to 105.046 against the Japanese yen, extending a climb for a fourth day.
A rally in Asian stock prices subdued the demand for the Japanese yen. Japan's Nikkei rose above the 30,000 level for the first time in more than 30 years.
Trade is expected to be thinned by holiday on Monday.
