EQUITIES

Asia-Pacific markets were mostly higher on Thursday. The South Korea’s KOSPI index led the gains, adding 2.58%, followed by the Australia’s S&P/ASX 200 at 1.76%, and Nikkei 225 at 1.79% higher. The Shanghai Composite advanced 0.37%, the Singapore’s Straits Times index up -0.21%, and India’s S&P BSE Sensex Index rose 0.33%. The Hong Kong’s Hang Seng index shed -0.43%.

Overnight on Wall Street, the Dow Jones Industrial Average rose 1.44% to close at a record, and the S&P 500 gained 0.57%, although the Nasdaq Composite ended 0.61% lower. Britain's blue-chip FTSE 100 index and the pan-European STOXX 600 indexes ended at its highest since February.

OIL

Oil steady after U.S. Capitol drama, hovering near a 10-month high. The Brent crude futures traded to $54.70 a barrel, while U.S. crude at $51.08.

Overnight, Brent closed at $54.30 per barrel, while WTI futures ended at $50.63 per barrel.

CURRENCIES

The dollar index inched 0.12% lower at 89.42, lay close to its overnight low of 89.206, a level not seen since March 2018.

U.S. Treasuries also suffered their steepest selloff in months after Democrat victories.

The Australian dollar slipped 0.7796 after touching a nearly three-year high of 78.195 on Wednesday. The yuan was largely flat at 6.4596 per dollar after Chinese authorities signalled a desire for a slower pace of gains.

Bitcoin to a record high of $37,400 on Thursday.

GOLD

Gold spot edged lower, trading at $1,916.80 an ounce, while added around $1,918.90 per ounce for gold futures. Previously closed at $1,918.30 and $1,908.60, respectively.

Silver trading at $27.05, platinum trading at $1,096.00 and palladium trading at $2,330.00.

ECONOMIC OUTLOOK

Stocks in Asia-Pacific perked up on Thursday trade as investors remained confident that violence in Washington would not disrupt a legitimate transition to a new presidency or derail political support for a U.S. economic recovery. Expectations for a large fiscal stimulus package in the U.S. in early 2021 are now pushing markets higher after the ‘blue sweep’.

Congress resumes certification of Biden's win after Trump supporters storm U.S. Capitol.

The NYSE once again made a U-turn on its decision to delist the Chinese telecom companies. Trading of the three securities will be suspended at 4 p.m. ET Monday, the exchange said.

U.S. private payrolls post first decline in 8-months, decreased by 123,000 jobs last month, the first decline since April, after increasing 304,000 in November.

The minutes of the Dec 15-16 FOMC meeting were dollar-neutral as the minutes stated that all Fed officials felt the current pace of bond buying was appropriate and that eventual tapering could be similar to 2013/14.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 87.156 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.882 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 103.551 and 103.889.

- Support line of 102.459 and 102.121.

Commentary/ Reason:

- USD/JPY on Thursday posted moderate gains, adding 0.11% to 103.125 yen, after dipping to 102.594 on Wednesday for the first time since March.

- USD/JPY moves were capped on some safe haven buying of the yen after the U.S. Capitol building was forced into lockdown when protestors stormed the building.

- The run-off election that made a ‘blue sweep’ also negative for dollar, as it may leads to more fiscal easing by the government.

- The yen weakened on concern Japan may tighten and extend lockdowns to contain the pandemic spread.