EQUITIES
Asia-Pacific markets were lower on Thursday, with the South Korea’s KOSPI index leading the decline, slipped about -1.64%, followed by the mainland Chinese stocks, the Shanghai composite that down -1.45% and the Hong Kong’s Hang Seng index at -1.02% lower. The Nikkei 225 shed 0.85%, the Australia’s S&P/ASX dropped 0.88%, the Singapore’s Straits Times index slid -0.92%, and the India’s S&P BSE Sensex index declined -0.39%.
Overnight on Wall Street, the Dow Jones Industrial Average rose 0.12%, to 30,723.6, the S&P 500 gained 0.10%, to 3,830.17 and the Nasdaq Composite dropped 0.02%, to 13,610.54.
OIL
Crude oil extended its advance as OPEC+ maintain their position to a reduced output policy, and as crude stockpiles in the U.S. fell to their lowest levels since March last year.
The Brent crude futures traded to $58.77 a barrel, while U.S. crude at $56.07.
On Tuesday, the Brent closed at $58.46 per barrel, while WTI futures ended at $55.69 per barrel.
CURRENCIES
The dollar index against a basket of six major currencies stood at 91.23, not far from the highest since early December. U.S. Treasury also edged higher.
The Australian dollar edged up to $0.7623, supported by hopes for U.S. stimulus. The New Zealand dollar rose to $0.7197. The offshore yuan was at 6.4579 per dollar.
Ethereum hit a record of $1,698 ahead of the listing of ethereum futures on the Chicago Mercantile Exchange next week. Bitcoin held steady at $37,752.
GOLD
Safe-haven gold slipped to $1,822.20 per ounce, while down around $1,824.60 per ounce for gold futures. Previously closed at $1,833.60 and $1,835.10, respectively.
Silver trading at $26.26, while platinum trading at $1,078.00 and palladium trading at $2,182.00.
ECONOMIC OUTLOOK
Asian stocks traded lower on Thursday as caution continues to dominate sentiment after a mixed overnight Wall Street session gave investors few immediate reasons to increase their risk positions, despite positive corporate earnings and firm signs of economic recovery. A tight liquidity conditions in China also curbed buying sentiment, after the country’s short-term interest rates rose again, reversing falls in the previous two days.
U.S. crude oil inventories hit their lowest level since March, fell by 994,000 barrels in the week to Jan 29 to 475.7 million barrels, the Energy Information Administration said. U.S. gasoline stocks rose by 4.5 million barrels in the week to 252.2 million barrels.
ADP Report showed hiring by U.S. private employers rebounded by 174,000 in January after a drop in December. A more comprehensive jobs report is expected on Friday.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 104.366 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 2.267 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.231 and 105.373.
- Support line of 104.769 and 104.627.
Commentary/ Reason:
The Japanese yen weakened 0.10% versus the greenback at 105.127 per dollar, as the pair spent a second day trading above 105.
The dollar traded near its strongest in more than two months against the yen on Thursday as foreign exchange markets looked for clues to their next move, possibly from the U.S. jobs report on Friday.
The yen meanwhile weakened after the Japanese government on extended its state of emergency for Japan's major areas by a month until March 7, along with dovish BoJ comments.
