EQUITIES
Shares in Asia-Pacific were lower on Tuesday trade. Japanese stocks led declines across the region, with the benchmark Nikkei 225 shedding around 3.0%. South Korea’s KOSPI fell around 1.34%, and the Australia’s S&P/ASX 200 slipped 1.11%.
China markets also opened lower. Hong Kong’s Hang Seng Index fell 2.15%, while stocks in Shanghai was down by 0.27%.
The Singapore’s FTSE Straits Times Index shed 0.71%, and the India’s S&P BSE Sensex index down 0.75%.
Overnight on Wall Street, the Dow Jones Industrial Average fell 0.1%, to 34,742.82, the S&P 500 lost 1.04%, to 4,188.43 and the Nasdaq Composite dropped 2.55%, to 13,401.86.
OIL
The Brent crude futures traded at $67.86 per barrel, and U.S. crude futures traded at $64.48 per barrel on Tuesday.
Overnight, the Brent closed at $68.32 while WTI ended at $64.92 per barrel.
CURRENCIES
Treasuries and the dollar have swung back and forth as investors adjust their expectations for when the U.S. Federal Reserve will start tapering bond purchases and raising interest rates as the U.S. economy gains momentum.
The dollar index, which measures the greenback against six major currencies, languished near a 2-1/2-month low to stand at 90.23.
The yield on benchmark 10-year Treasury notes stood at 1.590% as investors eyed the inflation data due this week.
Cryptocurrency ether rose to a fresh record above $4,200 before easing to around $3,890. Bigger rival bitcoin fell -6.3% to $55,586.
GOLD
The spot gold slipped to trade at $1,835.90 an ounce and fell to $1,835.20 per ounce for gold futures. Previously closed at $1,836.00 and $1,837.60, respectively.
ECONOMIC OUTLOOK
Stocks dropped in Asia on Tuesday after a slide in U.S. equities overnight as inflation jitters drove investors away from market-leading growth stocks, notably the tech stocks, to pick cyclicals and commodity amid the momentum of the economic recovery.
Inflation concerns will be in the minds of investors when the Labor Department releases its latest CPI report on Wednesday.
A shutdown to halt a ransomware attack on the Colonial Pipeline entered its fourth day, hobbling a network which transports nearly half of the East Coast's fuel supplies.
Some key events to watch today including Chinese inflation data, OPEC monthly oil market report, and Eurozone economic sentiment index, while Southeast Asian countries Malaysia and the Philippines are scheduled to report Q1 GDP data.
Among U.S. corporate earnings due today including ChipMOS Technologies, Electronic Arts, Unity Software & Kinross Gold.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 158.61 million, recording more than 3.29 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.136 and 109.337.
- Support line of 108.486 and 108.285.
Commentary/ Reason:
Against the yen, the dollar was slightly higher at 108.840.
While a steadying T-note yields undercut the yen, a decline in Japanese bond yields also weighed on the yen after the 10-year Japan JGB bond yield fell to a 1-1/2-week low Monday.
Bank of Japan policymakers warned of uncertainties over the country's economic recovery as pandemic curbs hurt service consumption, a summary of their opinions voiced at an April policy meeting showed on Tuesday.
Market participants now awaited the release of U.S. CPI data to gauge inflationary pressure and the Fed’s policy stance.
