· Yen bounces as vaccine boost fades, economic pressure builds
The Japanese yen edged higher on Friday as investors crept back to the safe-haven currency, worried about the economic damage of a trying winter in Europe and the United States as COVID-19 cases continue to surge.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 92.914 following its rise this week from levels below 92.8.
The yen JPY= rose 0.2% to 104.90 per dollar in the Asia session, its highest since Monday when it tumbled after Pfizer announced that it had developed a working virus vaccine.
The yen remains down by about 1.5% against the dollar this week, its sharpest weekly drop in five months, and softer on most crosses. But the bounce from its lows - along with softness in riskier currencies - shows plenty of caution remains.
The euro EUR= rose marginally overnight to clamber back over $1.18, but it is down about 0.6% for the week so far, helping the dollar index =USD to a 0.7% weekly rise.
The Chinese yuan CNY= was marginally weaker at 6.6219 per dollar.
In Europe and the United States, a second wave of infections has prompted the re-imposition of social restrictions to stop the virus’ spread. That will have markets discounting any good news in eurozone growth numbers due later on Friday.
· Australian COVID-19 vaccine candidate produces antibody response in early tests
arly testing of a potential COVID-19 vaccine developed by an Australian university and CSL Ltd has shown it to be safe and produce an antibody response, Minister for Health Greg Hunt said on Friday.
· Brazil trial of China's Sinovac vaccine not affected by suspension
· IMF chief says fiscal, monetary policy support should not be prematurely withdrawn
· Biden cements victory by flipping Arizona, as Trump keeps transition in limbo
· No voting system deleted or lost votes in U.S. election: security groups
Election security officials have no evidence that ballots were deleted or lost by voting systems in this month’s U.S. election, two security groups said in a statement released on Thursday by the lead U.S. cybersecurity agency.
· China says it extends congratulations to Biden
· Former China finance minister says trade frictions with U.S. could remain under Biden
Trade frictions between the United States and China may not ease in the near term even if Joe Biden becomes president, former Chinese finance minister Lou Jiwei said on Friday.
“Even if Biden is elected, the U.S. suppression of China will be inevitable.”
· Australia expects 'technical' issues blighting trade with China to be resolved
· Chinese President Xi Jinping decided to halt Ant's IPO: WSJ
· China faces the challenge of keeping its Big Tech in check — just like the U.S. does
· Japan's exports, consumer prices to extend declines: poll
Japan’s exports likely extended declines in October but at a slower pace as improving global demand helped some parts of the trade sector, data next week is expected to show, although a recent resurgence in coronavirus cases complicates the outlook.
Other key data due next week includes core consumer inflation, which is forecast to show the biggest fall in prices since early 2011 as the impact from a sales tax hike last year fades and private demand remains weak due to the pandemic.
Imports were expected to have fallen 9.0% in October from a year earlier, which would result in a trade surplus of 250 billion yen ($2.38 billion).
· Malaysia's economy suffers smaller contraction, central bank provides rosier 2021 outlook
Malaysia’s central bank provided a rosier growth outlook for 2021 after the economy suffered a smaller contraction in the third quarter, but said it would continue to help households and businesses withstand the fallout of the COVID-19 pandemic.
Gross domestic product fell 2.7% in July-September, smaller than the 3.2% decline forecast in a Reuters poll and showing a marked improvement on the 17.1% slump in the second quarter.
The trade-reliant economy recovered from its first contraction since the 2009 financial crisis after the government began gradually easing curbs to contain the virus in May.
· Oil falls on COVID-19 surge but on track for weekly gain
Oil prices fell on Friday, pressured by fears about a slow recovery in the global economy and fuel demand due to an accelerating rise in COVID-19 infections, but remained on track for a second straight weekly gain, helped by vaccine hopes.
Brent crude LCOc1 was down 75 cents, or 1.7%, at $42.78 a barrel as of 0314 GMT, after dropping 0.6% on Thursday. U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 89 cents, or 2.2%, to $40.23 a barrel, having lost 0.8% on Thursday.
U.S. government data also added pressure, as crude inventories rose by 4.3 million barrels last week, compared with an expected fall of 913,000 barrels.
For the week, both were headed for a surge of about 8%.
“Investors took profits from the recent rally as a gloomy global economic outlook dampened sentiment amid a sharp increase in coronavirus cases and new social restrictions,” said Koichi Murakami, an analyst at Daiichi Commodities Co Ltd.
Reference: CNBC, Reuters
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