EQUITIES
Asia-Pacific markets tumbled on Friday, except for the Singapore’s Straits Times index that gained 0.28%.
In Japan, the Nikkei 225 slipped -0.88%, while the South Korea’s KOSPI fell -0.92%. In Hong Kong, the Hang Seng index declined -1.43% while the Chinese mainland shares, the Shanghai composite was down -1.04%. The Australian ASX 200 shed -0.44%, and the India’s S&P BSE Sensex index traded 0.68% lower.
Overnight on Wall Street, the Dow Jones Industrial Average fell 0.46%, to 32,862.3, the S&P 500 lost 1.48%, to 3,915.46 and the Nasdaq Composite dropped 3.02%, to 13,116.17.
OIL
Oil prices edged up on Friday but were still down more than 8% for the week, on course for the biggest weekly loss since October.
The Brent crude futures traded to $63.41 per barrel, while the U.S. crude futures at $60.11 per barrel.
Overnight, the prices fell in their biggest 1-day declines since last summer. The Brent closed at $63.28 for Brent while WTI futures ended at $60.00 per barrel.
CURRENCIES
The dollar steadied, as higher Treasury yields helped it recoup losses seen after the Fed decision on Wednesday and from the previous session.
The yield on the U.S. 10-year Treasury note on Thursday rose above 1.75% for the first time in 14 months after the Fed pledged to look past inflation and keep interest rates near 0% until at least 2024, although ticked lower after the release of mixed economic data.
Bitcoin seesawing to around $56,703 Friday, weakened from a fresh record high of $61,781.83 on Saturday, after more than doubling since the start of the year.
GOLD
Gold prices fell, pressured by a surge in U.S. Treasury yields and a rebound in the dollar.
Gold spot added to trade at $1,732.20 an ounce, while rose around $1,732.00 per ounce for gold futures. Previously closed at $1,736.50 and $1,732.50, respectively.
ECONOMIC OUTLOOK
Most Asian stocks opened higher in early trade today but retreated thereafter, weighed by U.S. Treasury yields that rose to 14-month highs, weaker overnight Wall Street, and oil market performance.
The pullback in Brent oil and Nasdaq, after hitting their respective peaks recently, may set a negative tone that spill over to the broader market, especially for the energy sector and the tech sector today.
U.S. weekly initial unemployment claims unexpectedly rose +45,000 to 770,000, showing a weaker labor market than expectations of a decline to 700,000.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 121.73 million, recording more than 2.69 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.379 and 109.648.
- Support line of 108.511 and 108.242.
Commentary/ Reason:
The greenback traded flat to 108.926 yen, holding on to its small gains overnight.
After the Federal Open Market Committee policy decision that reiterated their commitment to stay dovish interest rate, the next focus for the currency market will be the Bank of Japan’s policy decision Friday, accompanied by results of a comprehensive policy review.
Markets are now braced where the BoJ is widely expected to loosen its control of bond yields and trim buying of ETFs, tweaks aimed at making the stimulus package more sustainable. Reports suggested that the central bank is expected to widen a band at which it allows long-term interest rates to move around the 0% target.
