EQUITIES
Asian share markets traded in green in early trading, except for Japan's Nikkei 225 that lose -0.19%, while China's Shanghai Composite up 0.52% and Singapore’s rose 0.77%. Shares in Australia also traded higher, as the S&P/ASX 200 rose 0.34%, and South Korea’s KOSPI up 0.86% in early trading. Markets in Hong Kong are closed for trading on Wednesday for a holiday.
Stocks rose broadly on Tuesday as Wall Street wrapped up its best quarterly performance in decades.
OIL
Oil rose in the morning of Asian trading hours though investors wary that rising COVID-19 cases would hurt demand. Brent crude futures traded to $41.67 a barrel, while U.S. crude at $39.75.
On Tuesday, Brent closed at $41.15 per barrel, while WTI futures ended at $39.27 per barrel.
CURRENCIES
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97.35 after falling from levels above 97.5 seen earlier.
The Japanese yen traded at 107.69 per dollar in Asia on Wednesday, close to the highest in three weeks. The mood for the yen soured after Bank of Japan data showed business sentiment fell to an 11-year year low.
The Australian dollar changed hands at $0.6909 after rising from levels below $0.685 yesterday.
GOLD
Gold currently trading at $1,781.70 per ounce, while stands around $1,799.50 per ounce for gold futures as of writing time. Previously closed at $1,780.10 and $1,800.50, respectively.
Silver trading at $18.22, platinum trading at $822.00 and palladium trading at $1,866 .00.
ECONOMIC OUTLOOK
Stocks in Asia Pacific edged higher in Wednesday morning trade as the second half of 2020 kicks off.
South Korean exports slumped 10.9% year-on-year in June, trade ministry data showed on Wednesday, much better than a 23.6% plunge in the previous month. While Japan's June factory activity extends declines for 14th month, as manufacturers’ sentiment worsened to -34 in June — its lowest level since June 2009, as compared with -8 in March.
A private survey (Caixin/Markit) showed China’s manufacturing activity expanded and beat expectations in June at 51.2, while yesterday official data reads at 50.9.
To date, number of confirmed worldwide cases for COVID-19 pandemic has passed reached more than 10.583 million today affecting 213 countries and territories around the world and 2 international conveyances, recording more than 514 thousand fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 108.264 and 108.822.
- Support line of 106.692 and 106.074.
Commentary/ Reason:
- USDJPY traded at 107.752 in Asia on Wednesday, close to the highest in three weeks. The mood for the yen soured after Bank of Japan data showed business sentiment fell to an 11-year year low.
- Stochastic indicator is less than 20, signalling that the indicator entered undervalued range.
- RSI indicator is also closing into the oversold range.
- MACD is trading below its signal line and positive.
