EQUITIES
Asia-Pacific markets traded higher on Thursday. Hong Kong’s Hang Seng index rose 1.13%, while the mainland Chinese stock, the Shanghai composite gained 0.25%. The Nikkei 225 in Japan jumped 0.62%, the Singapore’s Straits Times index rose 0.28%, and the India’s S&P BSE Sensex index added 0.584%.
Elsewhere, the shares in Australia edged higher as the S&P/ASX 200 gained 0.30%, meanwhile the South Korea’s KOSPI gained 0.56%.
Overnight on Wall Street, the S&P 500 closed 0.36% higher at 3,972.89 while the Nasdaq Composite jumped 1.54% to finish its trading day at 13,246.87. The Dow Jones Industrial Average, on the other hand, dipped 85.41 points to close at 32,981.55.
OIL
Oil fluctuated ahead of an OPEC+ meeting later today, at which the group will decide on its output policy. The Brent crude futures traded to $63.09 per barrel, and the U.S. crude futures at $59.41 per barrel.
Overnight, the Brent closed at $63.54 for Brent while WTI futures ended at $59.16 per barrel.
CURRENCIES
The dollar index held above 93, after surging as high as 93.357 on Tuesday. It has climbed from close to 90 at the start of March, to close for its best month since 2016. Now last stood at 93.24.
The 10-year US Treasury yields rose as high as 1.746% earlier this week and were last at 1.723%. In theory, a higher bond yields will lead to expectation of higher interest rates, which are bad for stock markets.
Risk-sensitive currencies and commodities reflected the caution.
While currency trading is expected to slow towards the Easter holidays in many parts of the world, the dollar could gain further if upcoming key U.S. economic indicators surprise on the upside.
GOLD
Gold prices rose on Thursday, as expectations of a $2 trillion stimulus plan in the U.S. raised concerns of inflation, though a firm dollar and rising U.S. Treasury yields dented the safe-haven metal's appeal.
The spot gold advanced to trade at $1,712.20 an ounce, while slipped to around $1,712.70 per ounce for gold futures. Previously closed at $1,708.80 and $1,715.60, respectively.
Silver dipped to $24.27, while platinum slipped to $1,178.00 and palladium down to $2,528.00.
ECONOMIC OUTLOOK
Asian stocks edge higher on Thursday as the second quarter kicks off with several economic data releases out across the region, and President Biden’s spending plan boosts U.S. economic outlook.
Technology stocks and indexes are among the top gainers in Asian trade today after an overnight big tech rallied in the U.S.' S&P 500 and Nasdaq, though prevailing high market volatility keep investors aware.
Investors parsed the details of a multi-trillion-dollar U.S. government spending plan and hoped for strong jobs data later in the week.
The Caixin/Markit manufacturing PMI for March came in at 50.6, as compared with February’s reading of 50.9, showing a slowing in growth of Chinese factory activity in March.
U.S. crude oil and gasoline stockpiles fell unexpectedly last week, as refiners ramped up runs to their highest in about a year to meet improved demand, the EIA said on Wednesday. Crude inventories fell by 876,000 barrels in the week to March 26, and gasoline fell by 1.7 million barrels.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 128.79 million, recording more than 2.81 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 111.104 and 111.382.
- Support line of 110.206 and 109.928.
Commentary/ Reason:
The U.S. currency held firm against the yen after ending March with its biggest monthly gains since November 2016, having risen to as high as 110.963 on March 31, to set a fresh 1-year top.
The dollar on Thursday traded at 110.676 yen, little changed since opening.
The rising in the U.S. bond yields on hope of vaccine rollouts and fiscal stimulus are boosting the dollar, as the dollar/yen is known to be particularly sensitive to interest rates differentials.
Optimism on the massive fiscal stimulus and aggressive vaccinations will boost the U.S. economic recovery also strengthened the dollar currency.
The Japanese yen found support on Thursday as final au Jibun Bank Japan PMI rose to a 52.7 in March compared with 51.4 previous reading, marking the fastest expansion since October 2018.
