EQUITIES

Stocks in Asia mostly higher on the first trading day of 2021. The South Korea’s KOSPI added 2.34%, leading the Asian markets. The Australia’s S&P/ASX 200 at 1.27% higher, the Hong Kong’s Hang Seng index gains 0.75%, and the Shanghai Composite rose 0.91%. The Singapore’s Straits Times index up 0.18%, and India’s S&P BSE Sensex Index rose 0.53%.

Meanwhile, the Japanese Nikkei 225 slipped -0.46% on the nation’s lockdown possibility.

Dow Jones and the S&P 500 Index hit all-time highs on the last trading day of 2020. Dow Jones advanced 196.9 points to 30,606.5, and the S&P 500 Index rose 0.64% to 3,756.1 points. Nasdaq Composite Index settled 18.3 points higher at 12,888.3.

OIL

Oil prices traded higher on Monday, ahead of the OPEC and non-OPEC Ministerial Meeting that to convene later today. The Brent crude futures traded to $52.36 a barrel, while U.S. crude at $49.02.

On Thursday, Brent closed at $51.80 per barrel, while WTI futures ended at $48.52 per barrel.

CURRENCIES

The dollar index was last at 89.75, not far from its recent 2-1/2-year low.

The Australian dollar rose and changed hands at $0.7714. Chinese yuan climbed to 6.4927 per dollar in offshore trade, close to a 2-1/2 year low. The Singapore dollar touched a 32-month high of S$1.3203 per dollar after data showed Singapore’s economy contracted slightly less than expected in the Q4.

Bitcoin topped US$34,000, just weeks after passing another major milestone.

GOLD

The decline in the dollar has been a support for gold, as the spot gold trading at $1,920.90 an ounce, while added around $1,926.20 per ounce for gold futures. Previously closed at $1,898.00 and $1,895.10, respectively.

Silver trading at $27.00, platinum trading at $1,084.00 and palladium trading at $2,356.00.

ECONOMIC OUTLOOK

Asian share markets started the year 2021 better on Monday as investors pinned their hope on vaccines for economic recovery, while also counting on central banks to keep money super cheap, though some says that the optimism is already priced. Japanese bourse slipped as reports of a possible tightening in coronavirus emergency rules for capital Tokyo and three surrounding prefectures.

Run-off elections in Georgia for two U.S. Senate seats tomorrow is watched. The election will determine which party will controls the Senate.

The final au Jibun Bank Japan Manufacturing PMI rose to 50.0 in December from 49.0 in November, and a preliminary 49.7 reading.

China Caixin/Markit manufacturing PMI expanding in December, coming in at 53.0, compared to November’s 54.9

To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 85.095 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.842 million fatality globally.

TECHNICAL OUTLOOK

[USDJPY]

Important Levels to Watch for Today:

- Resistance line of 103.618 and 103.868.

- Support line of 102.809 and 102.560.

Commentary/ Reason:

- The dollar slipped to 103.023 yen, on report that Japan is considering a state of emergency for Tokyo and three surrounding prefectures.

- The news pushed up the yen by about 0.3%, recording a new weekly high for the yen at 102.933 earlier today.

- Run-off elections in Georgia for two U.S. Senate seats tomorrow also cautiously watched. Democratic win could trigger further dollar weakness, as investors assume it would lead to higher stimulus spending which would in turn boost market sentiment and weigh down on the dollar.