EQUITIES

Asia-Pacific markets traded higher on Wednesday. The South Korea’s KOSPI led the gains to trade near its record high, advancing 1.38%, followed by and the Hong Kong’s Hang Seng index at 1.26% higher. Japan’s Nikkei 225 added 1.12%%, the Australia’s S&P/ASX 200 gained 0.62%, the Singapore’s Straits Times index up 0.59%, and the Shanghai Composite rose 0.06%.

Overnight on Wall Street, the Dow Jones Industrial Average rose 0.35%, the S&P 500 gained 0.28% and the Nasdaq Composite added 0.5%.

OIL

Oil prices fell on Wednesday on concerns over an unexpected jump in U.S. oil inventories last week. The Brent crude futures traded to $48.85 a barrel, while U.S. crude at $45.51.

On Tuesday, Brent closed at $48.84 per barrel, while WTI futures ended at $45.60 per barrel.

CURRENCIES

The U.S. dollar index, which measures the greenback against a basket of its peers, last traded at 90.81.

The Australian dollar added around 0.40% at $0.7440 on the day. The kiwi held at $0.7041.

GOLD

Spot gold fell from a two-week high as the start of vaccine treatment reduced safe harbour demand for the precious metal. Spot gold currently trading at $1,864.00 per ounce, while stands around $1,875.90 per ounce for gold futures. Previously closed at $1,870.30 and $1,874.90, respectively.

Silver trading at $24.30, platinum trading at $1,022.00 and palladium trading at $2,206.00.

ECONOMIC OUTLOOK

Asia-Pacific markets were set to rise on Wednesday as a coronavirus vaccine rollout commenced in the U.K., fuelling some of the optimism among investors. At the same time, U.S. stimulus negotiations and Brexit talks between the UK and the EU keep investors cautious.

The U.K. administered the first COVID-19 vaccines by Pfizer-BioNTech to the public on Tuesday, making it one of the first countries in the world and first of Western country to do so.

US policymakers continued to negotiate over additional stimulus to help offset the economic impact of the pandemic while pursuing a stopgap government funding bill. The package estimated to be $908 bln (4% of GDP).

Oil prices fell after API said that U.S. crude oil, gasoline and distillate stocks rose sharply last week, with crude stocks jumping by 1.14 million barrels.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 68.177 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.556 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 104.329 and 104.491.

- Support line of 103.806 and 103.645.

Commentary/ Reason:

- The Japanese yen staying relatively flat at 104.141 per dollar, trading in a quiet tone amidst weakening demand for the greenback.

- Rally in stocks reduced the safe-haven demand for the yen, while the dollar moves hampered on concern on over surging COVID-19 infections and renewed lockdown in the country.