EQUITIES

Asia-Pacific markets mostly traded higher on Friday. Australian shares ASX 200 were up 2.30% to lead the regional gains, while Japan's Nikkei stock index gained 2% after falling nearly 3% on Thursday. South Korea’s KOSPI reversed earlier losses to rise 1.89%. Elsewhere, India’s S&P BSE Sensex Index rose 1.26%, and Singapore’s Straits Times Index added 0.25%.

Hong Kong’s Hang Seng index however, declined 0.84%, while in mainland China, the Shanghai Composite at 0.05% higher. The Taiwan market is closed for a holiday on Friday.

Volatile session overnight on Wall Street, as investors reacted to news from the Fed, as well as the GDP figures and corporate earnings. The S&P 500 and Nasdaq retraced earlier gains to close lower. The S&P 500 ended the session down 0.5% at 4,326.51, and the tech-heavy Nasdaq Composite lost 1.4% to 13,352.78. The Dow Jones Industrial Average was up over 600 points at during intra-day trade, but closed almost flat, up 0.02% to 34,160.78.

OIL

Oil prices rose on Friday, amid concerns of tight supplies as major producers continue their policy of limited output increases amid rising fuel demand. Persistent tension between Russia and Ukraine also elevated the prices.

Both Brent and WTI are set to rise for a sixth week, the longest weekly streak since October, when Brent prices climbed for seven weeks while WTI gained for nine.

This year, prices have gained about 15% amid geopolitical tensions between Russia, the world's second-largest oil producer and a key natural gas provider to Europe, and the West over Ukraine as well as threats to the United Arab Emirates from Yemen's Houthi movement that have raised concerns about energy supply.

The market is now focusing on a Feb. 2 meeting of the OPEC and allies led by Russia, a group known as OPEC+. OPEC+ is likely to stick with a planned rise in its oil output target for March.

The Brent now traded at $89.79 per barrel, and the U.S. crude futures traded at $87.14 per barrel.

Both benchmarks saw to a seven-year high sometime overnight, before closed lower. The Brent futures ends at $89.34 a barrel, while the WTI crude oil prices closed to $86.61 per barrel.

CURRENCIES

The dollar was headed for its best week in seven months on Friday as traders priced in a year of aggressive U.S. interest rate hikes. The U.S. dollar index has shot above 97 for the first time since July 2020, and last stood at 97.162.

The yield on benchmark 10-year Treasury notes rose to 1.815% compared with its U.S. close of 1.808% on Thursday. The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 1.1981% compared with a U.S. close of 1.192%.

GOLD

Gold was slightly higher on Friday but heading for its sharpest weekly decline since November, as markets digested the U.S. Federal Reserve's policy tightening plans that propelled the dollar index to a multi-month peak.

Spot gold slid over 1% to a two-week low of $1,790.20 on Thursday. It has since recovered and was last trading at $1,799.20 on Friday. The metal fell about 2% for the week, it's worst fall since Nov. 26. The U.S. gold futures was up 0.2% at $1,798.50.

Spot silver rose 0.3% to $22.75 an ounce. Platinum was up 0.6% to $1,028.00 and palladium remained unchanged at $2,363.00.

ECONOMIC OUTLOOK

Asian stocks recovered some of their steep losses from the previous session on Friday as investors reacted to positive economic news with mixed corporate earnings, geopolitical unrest, and the prospect of a more hawkish Federal Reserve.

Geopolitical tensions in eastern Europe remains, as Russia continues to build up its military presence along the Ukrainian border and diplomats scramble to avoid conflict in the region.

Among a spate of economic data released on Thursday, the U.S. Commerce Department's advance take on Q4 GDP shows the U.S. economy in 2021 grew at its fastest pace in nearly four decades. The GDP came in at a 6.9% growth against the consensus estimate of 5.5%. Similarly, initial jobless claims, a gauge for the labour market, are also flashing a good sign with readings at 260,000, compared with 286,000 the previous week.