EQUITIES
Shares in Asia-Pacific were mostly higher on Monday, kicking off November trading on a positive note.
Japanese stocks surged to a one-month high on relief the Prime Minister Fumio Kishida's Liberal Democratic Party on Sunday held onto its single-party majority in defiance of predictions. The Nikkei 225 jumped 2.54% in afternoon trade.
Elsewhere, South Korea’s KOSPI advanced 0.42% while the S&P/ASX 200 in Australia gained 0.64%. The S&P BSE Sensex in India added 0.26%, while in Southeast Asia, the Singapore’s Straits Times index rose 0.66%. The mainland Chinese stocks nudged higher, with the Shanghai composite climbed 0.15%. The Hong Kong’s Hang Seng index bucked the overall trend, to fall 0.85%.
European markets also set to start the week on a positive note. European markets will be closely following developments at the COP26 climate summit in Glasgow, which began on Sunday.
OIL
Oil prices was pushed lower on Monday, ahead of OPEC+ meeting later this week. The OPEC+ will meet virtually on Nov. 4 to review policy, with analysts expecting them to stick to their plan to add 400,000 bpd of supply in December.
Prices also was weighted after China's National Food and Strategic Reserves Administration earlier today gave a statement that it was releasing gasoline and diesel reserves to boost market supply and stabilise prices in some regions.
The Brent now traded at $83.60 per barrel, and U.S. crude futures traded at $83.28 per barrel.
On Friday last week, the Brent ends at $83.72 a barrel, and the WTI settled at $83.57 per barrel.
CURRENCIES
Two-year U.S. Treasury yields rose 2 basis points in Asia trade to 0.5227%. Benchmark 10-year yields rose to 1.575%. October was the worst month in more than three-years for two-year Treasuries.
The dollar traded near a 2 1/2-week high to major peers on Monday as quickening inflation in the U.S. boosted the case for earlier Fed interest rate hikes. The dollar index, which measures the greenback against six rivals, was little changed at 94.163, hovering close to Friday’s peak of 94.302, a level not seen since Oct. 13.
GOLD
Gold edged higher on Monday, although caution set in ahead of a key U.S. Fed meeting after data showed inflation quickened.
Spot gold rose 0.1% to $1,786.30 per ounce, after slipping to an over one-week trough on Friday. U.S. gold futures rose 0.16% to $1,786.80.
Spot silver eased slightly to $23.93 per ounce. Platinum rose 0.96% to $1,030.50, while palladium jumped 1.35%to $2,007.00.
ECONOMIC OUTLOOK
Stocks edged higher on Monday, led by a post-election jump in Japan's Nikkei, and as investors reacted to the release of Asia's manufacturing activity.
Japanese shares jumped on Monday, with the Nikkei hitting a one-month high, a day after Prime Minister Fumio Kishida's ruling party held on to a majority in a parliamentary election and raised hopes of a stable government.
Asian readings manufacturing activity were mixed in October. Emerging economies saw COVID-19 infections subside, but rising input costs, material shortages and slowing Chinese growth cloud the outlook, business surveys showed on Monday.
China's factory activity expanded at its fastest pace in four months in October, with Taiwan, Japan, Vietnam, Indonesia, and Malaysia also expanding. South Korea's PMI, by contrast, fell, though it managed to stand above the 50-mark threshold.
Market participants are gearing up for another week of corporate earnings, central bank meetings and October’s jobs report, as well as purchasing managers index figures.
Due for earnings releases on November 1 including AMC Entertainment, McKesson, Clorox, and Avis Budget Group.
