Amid Weak Dollar, Asian Stocks Rising & Gold Close to $5,000 – Asia Market Wrap

Asian markets rose to a new high, and the dollar held its losses as global investors favoured non-US assets amid policy uncertainty and geopolitical worries. Precious metals also reached fresh all-time highs.

The MSCI Asia Pacific Index rose 0.4%, and an index of developing market stocks also reached a new high. Equity-index futures indicated advances for US benchmarks, albeit of a smaller scale than in Asia. Japanese stocks soared and the Yen fell after the BoJ left its policy rate unchanged at 0.75%, as predicted.

Currencies were under focus as China’s central bank raised the Yuan’s daily reference rate over the carefully watched 7-per-Dollar threshold for the first time since 2023. The Dollar maintained its losses after plummeting the most in a month. The weak US Dollar fuelled advances in precious metals, with gold rising to a record high of more than $4,965 per ounce. The price of silver per ounce was about $100.

Meanwhile, Japanese bond futures sank as the BOJ raised its inflation forecast. In Japan, PM Takaichi dissolved the lower chamber of parliament, announcing a snap election for February 8th.

There are mounting signs that market investors are withdrawing from US assets. Investors are pouring cash into emerging-market funds at a record pace, as momentum builds for a shift away from US assets, weakening the Dollar.