EQUITIES

Asia-Pacific markets traded higher on Wednesday. Japan’s Nikkei 225 led the gain again with 1.17% higher, followed by the Australia’s S&P/ASX 200 that advanced 0.86%. Next, the Hong Kong’s Hang Seng index gained 0.85%, Singapore’s Straits Times index climbed 0.32%, and South Korea’s KOSPI up 0.29%. Meanwhile, the Shanghai composite retreated at -0.22%.

Overnight on Wall Street, the Dow Jones Industrial Average rose 431.37 points, or 1.46%, to 30,022.64, the S&P 500 gained 55.83 points, or 1.56%, to 3,633.42 and the Nasdaq Composite added 151.08 points, or 1.27%, to 12,031.71.

OIL

Oil prices extended their gains for a fourth straight day on Wednesday as more vaccine news gave investors hope economic activity could resume globally, shrugging off on a report showing a higher-than-unexpected rise in U.S. crude stockpiles.

Brent crude futures traded to $48.46 a barrel, while U.S. crude at $45.40.

Oil gained around 4% overnight, Brent closed at $47.86 per barrel, while WTI futures ended at $44.91 per barrel.

CURRENCIES

The US dollar index, which measures the greenback against six major peers, fell further to 92.08 points.

The dollar teetered near a 2-month low against the Australian dollar and a 2-year low against the New Zealand dollar. The onshore yuan rose to 6.5773 per dollar on hopes for better Sino-U.S. ties under Biden. Other Asian currencies also edged higher.

The U.S. dollar’s declines are likely to continue because a vaccine and newly nominated Janet Yellen as the next Treasury secretary relieve two big uncertainties for investors.

Bitcoin cryptocurrency eased slightly to $19,046 but was still close to its all-time highs of $19,666 from December 2017.

GOLD

Gold fell for the fifth session in six. Currently trading at $1,802.30 per ounce, while stands around $1,801.20 per ounce for gold futures. Previously closed at $1,809.00 and $1,804.60, respectively.

Silver trading at $23.24, platinum trading at $959.00 and palladium trading at $2,199.00.

ECONOMIC OUTLOOK

Asian stocks looked to trade higher on Wednesday following a record session on Wall Street as coronavirus vaccine hopes and reduced uncertainty in U.S. politics buoy investor sentiment.

Oil prices are soaring ahead of the OPEC and its allies meeting on Nov 30, on expectation of extension of current production cuts. Oil has jumped around 25% this month.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 59.679 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.407 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 104.861 and 105.110.

- Support line of 104.057 and 103.808.

Commentary/ Reason:

- The yen, seen as a safe harbour currency, was little changed at 104.453 per dollar on Wednesday.

- As risk appetite improved on the market, subduing demand for the safe-haven currency, though, the U.S. dollar depreciated too. The dollar was under pressure from Yellen's expected push for fiscal stimulus.

- USD/JPY on Tuesday rose to a 1-week high before retreated after stocks rallied.