EQUITIES

Asia-Pacific markets were mostly lower on Tuesday. The South Korea’s KOSPI index led the loss, slipped -2.72%. The India’s S&P BSE Sensex Index and the Singapore’s Straits Times index shed -0.29%, and the Japan Nikkei 225 and the Australia’s S&P/ASX 200 were marginally lower, trading at -0.05% and 0.03%, respectively.

Meanwhile, the Hong Kong’s Hang Seng index added 0.46%, and the Shanghai Composite added 0.80%.

Overnight on Wall Street, the Dow Jones Industrial Average fell 0.29%, the S&P 500 lost 0.66% and the Nasdaq Composite dropped 1.25%.

OIL

Oil prices slipped on Tuesday as investors remained concerned about climbing coronavirus cases and stricter lockdowns globally, as well as on the stronger dollar. The Brent crude futures traded to $55.56 a barrel, while U.S. crude at $52.19.

On Monday, Brent closed at $55.66 per barrel, while WTI futures ended at $52.25 per barrel.

CURRENCIES

The U.S. dollar gets stronger across the board on rising US yields, with the index hold steady at 90.59, touched its highest since December as high as 90.73 overnight.

The Australian dollar changed hands at $0.7690, after seeing levels above $0.774 in the previous trading week.

Bitcoin slid as much as 21% over Sunday and Monday in the biggest two-day slide since March, wiping out about more than $100 billion from the entire cryptocurrency market.

GOLD

Safe haven gold advanced, trading at $1,850.30 an ounce, while slipped around $1,850.30 per ounce for gold futures. Previously closed at $1,843.40 and $1,949.80, respectively.

Silver trading at $25.11, platinum trading at $1,053.00 and palladium trading at $2,257.00.

ECONOMIC OUTLOOK

Asian stocks looked set for a muted start Tuesday after U.S. stocks fell for the first time in five sessions as political turmoil in Washington and rising coronavirus cases worldwide weighed on sentiment ahead of the start of the quarterly earnings season.

U.S. domestic political uncertainty also dominated trading as House Democrats introduced an article of impeachment against the U.S. President Donald Trump, accusing him of inciting insurrection following a violent attack on the Capitol last week.

Sino-US tensions intensifies again after U.S. lift curb on ties in Taiwan.

Goldman Sachs Group Inc, Morgan Stanley and JPMorgan Chase & Co will delist 500 structured products in Hong Kong as Trump’s China ban sinks in.

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 90.878 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.944 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 104.424 and 104.576.

- Support line of 103.934 and 103.782.

Commentary/ Reason:

- The greenback little changed against the yen on Tuesday. Trading at 104.314 yen, after rising to a 1-month high of 104.395 on Monday.

- Japanese yen weighed down as Japanese PM Yoshihide Suga told on Tuesday he would widen the state of emergency for the three western prefectures of Osaka, Kyoto and Hyogo to stem the spread of COVID-19,

- While for the dollar, the support from rising yields has so far trumped worries that the extra spending could trigger faster inflation, which ordinarily would make the greenback less attractive.