In Asian Equity Markets Japan’s Nikkei index rose to its highest level since January 1992 on Thursday, as it caught up to gains in global equities on Japan’s first trading day of 2018. The Nikkei was up 2.76 percent at 23,393.82. MSCI’s broadest index of Asia-Pacific stocks outside Japan was almost flat as profit-taking in South Korean stocks ahead of major earnings next week offset gains in other markets. The Shanghai Composite gained 0.27 percent and the Hang Seng Index edged up 0.22 percent. Australia’s S&P/ASX 200 rose 0.09 percent. Healthcare stocks and industrials led the gains. Ryman Healthcare Ltd was the best performer on the main index, closing up 2.5 percent to a record high.  Singapore stocks rose to an over two-and-a-half-year high, boosted by financials, with Oversea-Chinese Banking Corp Ltd and DBS Group Holdings Ltd hitting fresh records.

In Currency Markets the dollar edged up on Thursday after upbeat U.S. data and supportive minutes from the Federal Reserve’s latest policy meeting helped it shake off recent weakness. The euro was little changed at $1.2016 after losing roughly 0.4 percent overnight. The U.S. currency was 0.15 percent higher at 112.655 yen. Increasing investor risk appetite in broader markets also supported the dollar, notably against perceived safe-havens such as the yen and Swiss franc. The latter was at 0.9778 franc per dollar after sliding 0.6 percent the previous day to pull back from a three-month peak of 0.9699. The pound was steady at $1.3515 following overnight losses of 0.6 percent, when it fell back from a 3-1/2-month high of $1.3614 against a rebounding dollar. The Australian dollar was a shade lower at $0.7832 and the New Zealand dollar added 0.1 percent to $0.7098.

In Commodities Markets  oil prices on Thursday hit fresh two-and-a-half year highs and were at levels last seen at the start of the commodity decrease in 2014/2015, with markets tightening amid tensions in Iran and due to ongoing OPEC-led production cuts. U.S. West Texas Intermediate crude futures were at $62.10 a barrel, up 0.8 percent, from their last close. Brent crude futures were at $68.13 a barrel, up 0.4 percent, after hitting a May-2015 high of $68.16 shortly before. In the United States, crude oil inventories fell by 5 million barrels in the week to Dec. 29 to 427.8 million barrels, industry group the American Petroleum Institute said on Wednesday.  Spot gold was down 0.3 percent at $1,308.83 an ounce and U.S. gold futures were down 0.6 percent at $1,310.60 an ounce.

In US Equity Markets  the S&P 500 index rose above 2,700 for the first time on Wednesday and other major indexes hit record closing highs as technology stocks climbed after signs of robust economic growth. The Dow Jones Industrial Average rose 0.4 percent, to 24,922.68, the S&P 500 gained 0.64 percent, to 2,713.06 and the Nasdaq Composite added 0.84 percent, to 7,065.53. Gains in energy and healthcare also boosted the market. The S&P energy index gained 1.5 percent while S&P healthcare rose 1 percent. Intel Corp ended down 3.4 percent. The company acknowledged a report that a design flaw in its chips could let hackers steal data but said it was working on a solution that would not significantly slow computers. Oracle Crop shares were up 2.3 percent after Morgan Stanley upgraded its rating on the business software maker.

In Bond Markets Japanese government bond prices fell as rising equities dented the allure of safe-haven debt, amid subdued trading as investors tip-toed into the first trading day of 2018. The 10-year JGB yield was 1 basis point higher at 0.055 percent. The 30-year JGB yield rose 0.5 basis point to 0.810 percent. U.S. Treasury yields were little changed on Wednesday as traders stuck to their view that the Federal Reserve would gradually increase interest rates in 2018 based on the minutes of the central bank’s December policy meeting. The benchmark 10-year Treasury yield was down 1.8 basis points at 2.447 percent, while the 30-year yield was down 2.5 basis points at 2.785 percent, both compared to Tuesday’s close. The two-year yield reached a nine-year high at 1.939 percent.

Economic Calendar

• 10:30 GMT+0 UK Services PMI
• 14:15 GMT+0 US ADP Non-Farm Employment Change
• 14:30 GMT+0 US Unemployment Claims
• 17:00 GMT+0 US Crude Oil Inventories