Gold Hits a Record High and Asian Shares Trade in Range – Asia Market Wrap

Asian stocks were neutral as investors awaited additional trading cues. Gold hit a new high as Middle-East tensions fuelled demand and investors braced for the US presidential election.

China’s CSI 300 Index rose as the country’s banks lowered their benchmark lending rates, adding to optimism over recent stimulus measures. Shares rose in South Korea, Taiwan, and Australia, but sank in Hong Kong. US market futures were barely changed as the S&P 500 rose for the sixth week in a row, bolstered by corporate profits and hints of economic resiliency.

Financial markets are being influenced by bets on the health of the US and Chinese economies, as well as the impact of Middle Eastern tensions and geopolitics. Chinese banks slashed lending rates after policymakers undertook a number of steps to boost economic growth and the property sector.

Gold jumped to an all-time high of almost $2,730 per ounce, while silver, palladium, and platinum all increased. In the Middle East, Israel is considering an attack on Iran after a Hezbollah drone exploded near Prime Minister Netanyahu’s private residence over the weekend. Investors are also increasing their gold holdings ahead of what is expected to be a close US presidential election.

The Yen climbed for a second day against the dollar as markets braced for Japan’s legislative election on Sunday. A poll suggests that the ruling coalition of the Liberal Democratic Party and Komeito could fall short of the 233 seats required for a parliamentary majority.