EQUITIES
Asia-Pacific markets turned mixed from its early positive trends on Monday. The Nikkei 225 in Japan gained 0.51% in afternoon trade, while the Singapore’s Straits Times index nudged 0.66% higher. The mainland Chinese stocks were also higher as the Shanghai composite gained 0.46%.
Meanwhile, the South Korea’s KOSPI retreated -0.23%, the Hong Kong’s Hang Seng index slipped -0.37%, and the Australia’s S&P/ASX 200 declined -0.36%.
Markets in India are closed on Monday for a holiday.
OIL
Oil prices eased as markets assumed the re-floating of the Ever Given would allow tankers to use the waterway again. The market will also be cautious ahead of an OPEC meeting this week, which will have to decide whether to extend supply limits or loosen the spigots.
Oil slumped more than 2% on Monday, with the Brent crude futures traded to $63.23 per barrel, and the U.S. crude futures at $59.55 per barrel.
On Friday, the Brent closed at $64.57 for Brent while WTI futures ended at $60.97 per barrel.
CURRENCIES
The dollar traded high against most major currencies, attracting interest on optimism over the U.S. economy, with the U.S. President Joe Biden is expected to put some detail in his infrastructure spending plans on Wednesday.
The dollar index stood at 92.85, after reaching its highest since mid-November.
The prospect of faster U.S. economic growth has spurred speculation of rising inflation and weighed on Treasury prices. Yields on U.S. 10-year notes eased a touch on Monday to 1.66% but were still not far from the recent 13-month top of 1.754%.
The dollar steadied against the risk-sensitive currencies, including Aussie, kiwi and sterling, having fallen late on Friday with the positive mood.
GOLD
The lift in yields has weighed on gold, retreated to trade at $1,727.40 an ounce, while slipped to around $1,724.80 per ounce for gold futures. Previously closed at $1,733.30 and $1,732.30, respectively.
ECONOMIC OUTLOOK
Asian share markets mixed on Monday as markets look to President Biden to outline his infrastructure spending plans later this week, while oil prices slipped as the ship blocking the Suez Canal was re-floated, raising hopes the vital global supply lines could reopen and ease global shipping backlogs.
Besides infection and inoculation counts, investors looking to PMI figures due midweek and for some details of U.S. President Joe Biden’s infrastructure spending plan.
Some key events to watch this week:
China manufacturing PMI due Tuesday. China Caixin PMI due Thursday.
President Biden is expected to unveil his infrastructure program Wednesday.
EIA crude inventory report Wednesday. OPEC+ meets to discuss production levels for May on Thursday.
U.S. employment report for March on Friday.
Good Friday starts Easter weekend in countries including the U.S., U.K., France, Germany, Australia and Canada.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 127.12 million, recording more than 2.78 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.900 and 110.247.
- Support line of 108.779 and 108.423.
Commentary/ Reason:
The dollar held at 109.482 yen, retreated around 0.17% on Monday, though not far from its highest since early June on Friday at 109.844.
Some BoJ policymakers saw early bright spots in the pandemic-hit economy even as they debated steps to make the bank’s ultra-loose monetary policy more sustainable, a summary of opinions voiced at the March rate review showed on Monday.
The yen is sensitive to gaps in returns on U.S. and Japanese government debt.
