EQUITIES
Asia-Pacific markets traded mixed on Tuesday. In Australia, the S&P/ASX 200 added 0.89%, and the India’s S&P BSE Sensex index advanced 0.19% higher. The South Korea’s KOSPI rebounded, to add around 0.15%.
The Nikkei 225 in Japan slipped -1.03%, and Singapore’s Straits Times index also edged lower, at -0.30%. The Shanghai Composite declined aound -0.22%.
Hong Kong’s stock market remains closed on Tuesday for holidays.
Overnight on Wall Street, the Dow Jones Industrial Average surged 1.13% to a record closing high of 33,527.19. The S&P 500 also saw a record close as it gained 1.44% to 4,077.91. The tech-heavy Nasdaq Composite rose 1.67% to finish its trading day at 13,705.59.
OIL
Oil prices rose as dollar drop. The Brent crude futures traded to $62.68 per barrel, and the U.S. crude futures at $59.21 per barrel.
Oil fell 4% a barrel on Monday as the Brent closed at $62.15 while WTI futures ended at $58.65 per barrel.
CURRENCIES
The dollar fell to an almost 2-week low versus a basket of currencies on Monday but added some on Tuesday. last stood at 92.64. The greenback was weakening through the global risk-on channel as foreign exchange traders sold the dollar and put more money to work outside of the U.S.
U.S. Treasury yields edged lower, as investors paused recent selling of government bonds and took profit from short positions, though the uptrend in rates remained intact following Friday's blockbuster jobs report.
The cryptocurrency market capitalization hit an all-time peak of $2 trillion on Monday, according to data and market trackers CoinGecko and Blockfolio. The surge was led by bitcoin, which hit its own milestone by holding at a $1 trillion market cap for one week. Bitcoin was last at $58,775.
GOLD
Gold prices rose on Tuesday, as a weaker dollar made bullion cheaper and more attractive for buyers, while a pull-back in U.S. Treasury yields also provided further support. The spot gold rose to trade at $1,734.30 an ounce, while advanced to around $1,734.60 per ounce for gold futures. Previously closed at $1,728.50 and $1,728.80, respectively.
ECONOMIC OUTLOOK
Asian markets trended cautious today, tracking the better overnight performance on Wall Street, as investor sentiment was buoyed by positive U.S. economic data. However, the momentum was halted as rising virus cases in countries such as India and the Europe seems to undercut economic growth.
Currency and bond markets paused for breath after a month of rapid gains in the dollar and in U.S. Treasury yields.
Following the country’s positive jobs report last Friday, an ISM survey yesterday showed activity in the U.S. services industry reaching its highest level on record in March.
China’s services sector activity grew in March. The Caixin/Markit services PMI for March came in at 54.3, as compared to February’s reading of 51.5.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 131.71 million, recording more than 2.86 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 110.767 and 111.069.
- Support line of 109.789 and 109.487.
Commentary/ Reason:
The dollar little changed on the yen on Tuesday to 110.185.
After a month of rapid gains in the dollar and in U.S. Treasury yields, the dollar consolidates below last Wednesday’s 1-year high on retreating T-note yields.
In a supportive factor for the yen, Monday’s economic data showed the Japan Mar Jibun Bank services PMI was revised upward to a 14-month high of 48.3 from the previously reported 46.5.
The yen also garnered support Monday after the BOJ said Japan’s output gap, a broad measure of supply and demand, narrowed to -2.0% in Q4 from -3.4% in Q3 as Japan’s economy continued to rebound from its pandemic slump.
