Support
Asian stocks lower on dented sentiment
Sentiment turned sour in markets over Taiwan’s strongest earthquake in 25 years and a tracking a lower close in Wall Street.
March data indicated manufacturing growth for the first time in 1-1/2 years, a rebound in new orders for U.S.-manufactured goods exceeding expectations
Gold prices surged amid rising safe-haven demand amid uncertainty about rate cuts.
Both crude benchmarks saw a 1.7% increase during the previous session, marking their highest levels since October.
On the Market Watch:
Asian stocks
Asian stocks decline as Taiwan was hit by the strongest earthquake in 25 years triggering tsunami warnings in China. TSMC, one of the largest semiconductor foundries in the world. It is renowned for its advanced manufacturing processes and technologies fell 1.5% in early trades as it evacuated some of its production lines.
In currencies
The euro inched higher this morning to stabilize near $1.07760, maintaining some distance from the over one-month low reached in the previous session, following a period of profit-taking in the U.S. dollar late overnight. Meanwhile the dollar, which had touched a near five-month high of 105.10 against a basket of currencies on Tuesday, remained steady at 104.72.
Robust U.S. economic data has been driving the dollar higher to also hit a 5 month high coincidently. March data indicated manufacturing growth for the first time in 1-1/2 years, a rebound in new orders for U.S.-manufactured goods exceeding expectations, and a labor market that remains resilient.
The Sterling was last trading at $1.2580 after seeing a sharp fall at the start of the week.
In Commodities
Oil prices continued to rise as investors remained concerned about supply issues particularly after Ukrainian attacks on Russian refineries and as Middle Eastern tensions bound to escalate and involve Iran more directly.
Both benchmarks saw a 1.7% increase during the previous session, marking their highest levels since October. Brent crude futures for June increased by 17 cents, or 0.19%, reaching $89.09 per barrel, while WTI futures for May climbed by 7 cents, or 0.08%, to $85.22 a barrel.
In other commodities, gold prices inched lower from a recent record high of $2,288, which was reached during early Asian trade. Supported by a weaker US Dollar and lower US Treasury bond yields, as well as increasing geopolitical tensions in the Middle East.
