ECONOMY
On Friday, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.25%. Asian Indices advanced after upbeat data and optimism in the tech sector lifted Wall Street stocks, helping calm some of the jitters sparked by the Federal Reserve’s cautious outlook on the world’s biggest economy.
Overnight , the S&P 500 gained 1.09% while the Nasdaq Composite rallied 1.42%, with the Philadelphia SE Semiconductor Index soaring 3.5%. Apple Inc led the tech sector’s advance, rising 3.7%, ahead of the company’s expected streaming service debut next week.
On Thursday’s U.S. economic data was upbeat as initial claims for jobless benefits fell more than expected and mid-Atlantic factory activity rebounded sharply. The figures mollified worries about the U.S. economic outlook after the Fed on Wednesday surprised investors by adopting a sharp dovish stance, anticipating no further interest rate hikes this year and ending its balance sheet roll offs.
Another cloud hanging over markets was Britain’s fraught moves to exit from the European Union, as the British pound was bruised anew by rising worries about a no-deal Brexit. EU leaders said Britain could leave the European Union without a deal on April 12 if lawmakers fail next week to back Prime Minister Theresa May’s agreement with Brussels. EU leaders gave May an extra two months, until May 22, to leave if she wins next week’s vote in parliament.
FOREX
The dollar recover with its index against a basket of six major currencies rising to 96.316 from Wednesday’s 1-1/2-month low of 95.735.
The euro traded at $1.1377, off Wednesday’s 1-1/2-month high of $1.14485.
USDJPY stood at 110.77, having hit a five-week low of 110.30 on Thursday.
U.S. 10-year notes yield slipped to as low as 2.50% on Thursday, its lowest since early January last year. The five-year yield dropped to 2.34%, below the current Fed funds rate around 2.40%, as fed funds futures price in about 50% chances of a rate cut this year.
The pound traded at $1.3134, having dropped to $1.3004 the previous day.
COMMODITY
Oil fell held near 2019 highs, supported by a broad risk-on mood, OPEC production cuts and U.S. sanctions on key producers Iran and Venezuela.
Brent crude oil futures were at $67.82 per barrel , down 4 cents from their last close but within a dollar of the $68.69 per barrel 2019-high marked the day before.
Malaysian palm oil futures hit a more than two week high on Thursday as easing concerns about high output and expectations of better export demand buoyed investor sentiment.
U.S. corn futures jumped more than 1% on Thursday to their highest level in 2-1/2 weeks as concerns about delayed planting in the western U.S. Midwest sparked buying and fund short-covering.
Rice export prices in India rose to their highest level in more than seven months as the rupee appreciated, denting demand, while trading companies in Vietnam increased domestic buying to full-fill new overseas deals.
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