EQUITIES
Asia-Pacific markets were higher on Friday. In Japan, the Nikkei 225 rose 1.42% to lead the gains in the region. South Korea’s KOSPI index jumped 1.29% as tech shares gained.
The Australian shares rose as the benchmark ASX 200 added 0.75%, while the Singapore’s Straits Times index advanced 0.07%, and the India’s S&P BSE Sensex index was up 0.73%.
Chinese mainland shares also gained as the Shanghai composite added 0.38% while the Hang Seng index however, struggled for gains, to slip -0.25% lower.
Overnight on Wall Street, the Dow and S&P 500 closed at record highs. The Dow Jones Industrial Average rose 0.58%, the S&P 500 gained 1.04% and the Nasdaq Composite added 2.52%. European stock markets are on course for strong weekly gains.
OIL
Crude prices eased on Friday but hovered near $70 a barrel for Brent as production cuts by major oil producers constrained supply, with optimism of demand recovery also lending support. The Brent is on track to post weekly gains for the eighth week after touching a 13-month high on Monday.
The Brent crude futures traded to $69.53 per barrel, while the U.S. crude futures at $65.86 per barrel.
Oil prices rose 2% on Thursday, to close at $69.63 for Brent while WTI futures ended at $66.02 per barrel.
CURRENCIES
An improving sentiment eased the U.S. dollar. The index hovered near a 1-week low against rivals, last traded at 91.54. It has dropped around 0.6% this week, after retreating from a more than 3-month high of 92.506 reached Tuesday.
The gauge remains 1.6% higher this year as it tracked benchmark 10-year Treasury yields from below 1% to as high as 1.625% at the end of last week, before their retreat to around 1.5% currently.
Euro zone bond yields fell after the ECB said it was ready to accelerate money-printing to keep a lid on borrowing costs, using its 1.85 trillion euro PEPP Program more generously over the coming months to stop any unwarranted rise in debt financing costs.
Cryptocurrency bitcoin briefly rose above $58,000, approaching a record high.
GOLD
Gold prices eased on Friday, while still on course to mark their best in seven weeks. Gold spot slipped to trade at $1,719.10 an ounce, while down around $1,717.30 per ounce for gold futures. Previously closed at $1,723.10 and $1,712.60, respectively.
Silver was on track for its best week since late January, while platinum also set to post its best week in four. Palladium also gained.
ECONOMIC OUTLOOK
Asian shares climbed on Friday amid growing optimism in the market, tracking gains on the overnight Wall Street jump led by its technology stocks, and after the U.S. President Biden signed into effect the stimulus bill.
U.S. President Joe Biden signed the $1.9 trillion coronavirus relief package, which will send direct payments of up to $1,400 to most Americans.
Investors also kept an eye on a possible improvement in U.S.-China relations, ahead of the U.S. secretary of state meeting with top Chinese officials on March 18.
Applications for U.S. jobless benefits fell by more than forecast last week to the lowest since early November. The initial claims in regular state programs fell by 42,000 to 712,000 in the week ended March 6, Labor Department data showed on Thursday. Continuing claims declined by 193,000 to 4.14 million in the week ended Feb 27.
The ECB said it expects to increase bond purchases significantly next quarter in its meeting yesterday.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 118.545 million, recording more than 2.629 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.393 and 110.066.
- Support line of 108.047 and 107.374.
Commentary/ Reason:
The dollar consolidated at around 108.692 yen to add around 0.2% on Friday, after pulling back from a 9-month high of 109.230 reached on Tuesday.
The dollar gained on the low-yielding yen, supported both by the stabilising Treasury yields and the upswing in risk aversion the bond rout has generated.
The rally in global equity markets also curbed the yen’s safe-haven appeal.
