EQUITIES
Asia-Pacific markets mostly higher on Asian afternoon trade. In Japan, the Nikkei 225 added 0.47%, Australia’s S&P/ASX 200 gained 0.08%, South Korea’s KOSPI rose 0.13%, Singapore’s Straits Times index up 0.36%, and Hang Seng index in Hong Kong at 0.75% higher. Meanwhile, Shanghai composite retreated -0.38%.
Overnight, The Dow Jones Industrial Average was up 0.40% and the S&P 500 was up 0.47%. The tech-heavy Nasdaq Composite rose 0.33%.
OIL
Oil prices rose on optimism about a possible stimulus agreement, though the gains pared on rising COVID-19 cases worldwide and Libya’s plan to boost its output. Brent crude futures traded to $42.94 a barrel, while U.S. crude at $41.51.
On Tuesday, Brent closed at $43.16 per barrel, while WTI futures ended at $41.46 per barrel.
CURRENCIES
The dollar index pushed down to a 1-week low of 92.92, as investors optimistic about the prospects for a pre-election U.S. stimulus package and as coronavirus cases spiked in Europe.
The Australia dollar weighted by the prospect of monetary easing, was at $0.7047, having declined from levels above $0.707 earlier this week. New Zealand dollar also lagged on the dollar, weighed by the prospect of negative rates.
The onshore yuan jumped to 6.6602 per dollar, the strongest since July 2018. Yuan bulls have been encouraged by recent signs from the People’s Bank of China that it is more comfortable with currency appreciation.
GOLD
Bullion rose as dollar weakened. Spot gold currently trading at $1,918.90 per ounce, while stands around $1,922.80 per ounce for gold futures. Previously closed at $1,905.80 and $1,915.40, respectively.
Silver trading at $25.05, platinum trading at $875.00 and palladium trading at $2,292.00.
ECONOMIC OUTLOOK
Asian stocks were set for modest gains on Wednesday on growing optimism on U.S. stimulus deal and news of vaccine trial resumed, although wobbles in the tech sector could keep a lid on investor sentiment.
AstraZeneca Plc's COVID-19 vaccine trial in the United States is expected to resume as early as this week.
On U.S. stimulus front, The White House and Democrats have moved closer to agreement on a new package as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 40.711 million affecting 213 countries and territories around the world and 2 international conveyances, recording more than 1.123 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 105.762 and 105.903.
- Support line of 105.308 and 105.167.
Commentary/ Reason:
- The safe-haven yen recovered from a 1-week low recorded yesterday to sit at 105.34 per dollar on Wednesday.
- USD/JPY rose to a 1-week high Tuesday as the yen weakened on report that the Bank of Japan is expected to cut this fiscal year’s economic and price forecasts when it issues fresh quarterly projections at next week’s rate review.
- Strength in stocks also curbed the safe-haven demand for the yen.
