EQUITIES
Asia-Pacific markets were higher on Friday, with the Nikkei 225 leading the gains, soared about 1.36%. The mainland Chinese stocks, the Shanghai composite rose 0.46% and the Hong Kong’s Hang Seng index at 0.51% higher. The KOSPI index rose 0.25%, the Australia’s S&P/ASX gains 1.13%, the Singapore’s Straits Times index advanced 0.04%, and the India’s S&P BSE Sensex index was up 0.67%.
Overnight on Wall Street, the S&P 500 rose 1.1% to a record closing high of 3,871.74. The Dow Jones Industrial Average surged 332.26 points to close at 31,055.86 while the Nasdaq Composite advanced 1.2% to 13,777.74, also touching a new high.
OIL
Oil prices climbed on Friday to their highest levels in a year, extending a run of strong gains this week, supported by strong U.S. economic data, falling inventories and a decision by the OPEC to maintain the reduced output policy, although the gains are limited by the strength in dollar.
The Brent crude futures traded to $59.24 a barrel, while U.S. crude at $56.63.
On Thursday, the Brent closed at $58.84 per barrel, while WTI futures ended at $56.23 per barrel.
CURRENCIES
Bullish sentiment around stimulus and the broader U.S. economic recovery also pushed longer-term Treasury yields higher and strengthened the dollar. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 91.57 after earlier rising from levels below 91.2.
GOLD
Strength in the dollar pushed gold to a 2-month low to $1,794.50 per ounce, while down around $1,794.80 per ounce for gold futures.
Silver trading at $26.03, while platinum trading at $1,092.00 and palladium trading at $2,218.00.
ECONOMIC OUTLOOK
Asian stocks pushed higher Friday after their U.S. peers climbed to a record amid quarterly earnings, stimulus talks and progress in vaccine distribution.
A tight liquidity conditions in China curbed some investors buying sentiment. Higher interest rates raised worries Chinese policymakers may be starting to shift to a tighter stance to rein in share prices and property markets.
Democrats pushed ahead with U.S. President Joe Biden' proposed $1.9 trillion stimulus plan without bipartisan support.
The U.S. Labor Department's showed 779,000 Americans filed new applications for unemployment benefits last week, lower than 812,000 in the prior week.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 104.838 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.281 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.827 and 106.099.
- Support line of 104.949 and 104.677.
Commentary/ Reason:
The dollar edged 0.06% higher on Friday at 105.555 yen after earlier pushing as high as 105.70 for the first time since mid-November.
A rally in stocks weighed on the yen as they reduce the yen's safe-haven demand. The yen also has carry-over pressure from Wednesday on comments from BoJ Deputy Governor Masazumo, who said the BOJ's policy review set for March is not meant to find ways to talk of tighter monetary policy and that "the BoJ does not intend to tighten monetary easing."
The markets also looked for clues to their next move, possibly from the U.S. jobs report on later today.
