The Asian market began this week with a strong start, as Wall Street’s technology gains boosted the markets. Gold also surged, reaching new record highs on expectations that US monetary policy will be loosened.
Other countries, including China, kept their benchmark lending rates the same despite weak data on economic growth. Uber, Lyft, and Baidu, a Chinese company, announced that they would be testing driverless taxis with Uber in Britain.
Asian markets track Wall Street gains
Asian stocks rose on Monday despite a week of reduced trading volume in some parts of the globe due to holidays.
Investors continue to invest in equities and commodities as they await delayed US data that is expected to reveal robust growth for the third quarter.
The Nikkei index in Japan rose 1.8% this week, continuing a recovery from the previous week. This was due to the sharp drop of yen which boosted export prospects.
Currency has come under pressure since the Bank of Japan increased interest rates at a 30 year high of 0.75 percent and indicated further tightening. This pushed yields on 10-year government bonds to levels not seen since 1999.
The broad MSCI Asia-Pacific Index outside Japan also gained 0.8%.
South Korea’s stock market rose 1.8% due to optimism about AI earnings. China’s CSI 300 index rose 0.9%.
Singapore’s benchmark, the S&P 500 index, has reached a new high.
The European equity futures market was more muted, with a slight decline.
Some strategists cautioned against the optimism.
Bank of America said that investor sentiment has moved to “extremely bullish territory,” which is a level often associated with short-term declines in global equity markets.
Historic rally of Gold and Silver continues
The gold price has risen to an unprecedented high of $4,400 per ounce. This rally is the strongest in over four decades.
This move follows the US Federal Reserve’s rate reduction of a quarter point last week, which reinforced expectations for further ease in coming months.
In Asia, spot gold traded near $4390 per ounce. Silver also surged, reaching a new record of $69 per ounce.
Palladium and platinum also saw sharp increases. Analysts attributed the gains to looser expectations for monetary policies, increased geopolitical tensions and central bank purchases.
The price of gold has increased by two thirds in the past year. This is due to the steady demand from government and exchange traded funds that are backed by bullion.
The silver and platinum markets are on track to have their best year since the 1970s.
China keeps benchmark rates steady
China’s Central Bank held their key lending rates at the same level for the seventh time in a row. The one-year and five-year rates were both kept at 3.5%.
This decision was made despite the fact that economic indicators were weaker than expected and there had been a long-term slump in real estate.
Fixed-asset investments contracted sharply in November as well, despite the fact that retail sales and industrial production both fell short of expectations.
In November retail sales were down by 1.3% compared to the same month last year, a slowdown from October’s 2.9% increase.
The industrial production of the United States increased 4.8% compared with the prior year. This was a much higher increase than the 5% expected.
Some economists believe that additional stimulus is needed. However, they cautioned that the impact of monetary ease alone could be limited without structural reforms.
Uber and Lyft to trial robotaxis in the UK
Uber and Lyft, in partnership with Baidu, will test driverless taxis on the UK corporate market.
Uber will begin piloting its robotaxis in London during the first half 2026, using Baidu’s Apollo Go. Commercial services are expected to be available before next year.
Lyft has announced plans to test similar technologies, subject to regulatory approval.
These moves show the global competition for autonomous transportation, with ride-hailing firms pursuing partnerships instead of developing their own technology.
The driverless car race is being led by Alphabet Waymo, Baidu, Weride and Chinese companies Baidu.
The post Morning Brief: Asian Shares Advance as Yen Slides; Gold Hits Record on Rate-Cut Bets may change as new information unfolds
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