Almost all Asia Pacific indices rose on Thursday (4 Oct) morning, after oil price fell sharply due to US weaker demand from inventories data from EIA, altogether with US 10-year treasury note’s yield that retreated from a 16-year high of 4.8%.
UK 2-year treasury Gilt was also auctioned at a lower rate at 4.964% from 5.272%, which confirmed the slowdown or pause of bond yield rising trend at least for now.
Japan’s NIKKEI led the gain train today by 1% over 30,800. Taiwan’s TWII followed by 0.9% over 16,400. And both South Korea’s KOSPI and Singapore’s STI also gained by 0.6%, moving the indices over 2,420 and 3,160, respectively, while there’s no change for Chinese indices since it’s still on the golden week holidays.
Meanwhile, the halving of non-farm payrolls data from 180k to 89k caused US Futures to be mixed despite the sharp fall in energy prices, as many interpret that the US FED won’t hike more rate if the employment situation is not good.
S&P 500 Futures rose back near 4,300, along with NASDAQ that headed over 14,900. Both reflected a lower market volatility as VIX had fallen to 18.5 from the June-high over 20.
Energy commodities,especially crude oil, fell sharply, as WTI crude oil fell to $84.6 last night, together with Brent that fell to $86.3, which is the month-low price level after both had been over $90 a few days ago. However, natural gas had been rising over $3.00 per MMBTU.
On the other hand, the US Dollar Index (DXY) continued to drop to 106.3, as other pairs currencies continued to recover, especially JPY that many speculated that BoJ had been starting to intervene.
Meanwhile, gold price recovered over 1840 per Troy ounce. And the long-term, US 30-year bond price index (ZB) recovered to 111.8, after it had fallen below the 2007-low under 110. Both of these confirmed the slowing down or pausing of the strengthening USD.
