Asian Markets Mixed And US Futures Edge Lower in Holiday Trade
US futures dipped slightly, while Asian shares displayed a mixed performance on Friday, as Tokyo’s Nikkei 225 hovered near record high levels. The prices of gold and silver surged to records, extending their sharp gains for the year as investors, including central banks, have accumulated the precious metals, which are regarded as safe havens in times of uncertainty. The price of gold increased by 0.8 percent, reaching 4,538.80 per troy ounce, while silver surged by 4.5 percent to $74.90 per ounce. Previous increases in gold prices indicated concerns surrounding the US government shutdown. Anticipation surrounding the US Federal Reserve’s potential interest rate cuts in the upcoming year, which may lead to a depreciation of the dollar against other currencies, has also driven an increase in gold purchases.
“Gold is doing what gold does when the world loses its anchor: it becomes the anchor,” Stephen Innes said in a recent report. For centuries, gold has remained the one asset that doesn’t blink. When politics goes awry, when currencies unravel, when inflation consumes the essentials, gold remains the singular form of collateral that the world continues to regard as definitive. In share trading, Tokyo’s Nikkei 225 rose by 0.8 per cent to 50,822.25 following the Cabinet’s approval of a historic defense budget plan that surpasses 9 trillion yen ($58 billion) for the upcoming fiscal year. Prime Minister Sanae Takaichi’s government seeks to enhance Japan’s strike-back capability and coastal defenses through the deployment of cruise missiles and unmanned arsenals amid heightened tensions with China. Heavy industries and high-tech companies spearheaded the progress.
The dollar increased to 156.09 Japanese yen, up from 155.83 yen. The euro rose to $1.1787, up from $1.1785. Markets in mainland China experienced a decline, as the Shanghai Composite index fell by 0.2 per cent to 3,952.09. South Korea’s Kospi rose by 0.3 percent to reach 4,120.04, while Taiwan’s Taiex experienced a notable increase of 0.6 percent. Shares experienced a decline in Thailand and India. In other parts of the region, markets in Hong Kong, Australia, New Zealand, and Indonesia were closed.
Most European markets will remain closed on Friday, while Wall Street will reopen for a full day of trading following the Christmas holidays. Trading volumes are expected to stay subdued as the majority of investors have wrapped up their positions for the year. In other dealings early Friday, US crude oil increased by 6 cents to $58.41 a barrel, while Brent crude rose by 4 cents to $61.84 a barrel. Oil prices have recently declined after reaching nearly $70 a barrel in June. The price of bitcoin increased by 1.7 percent, reaching 89,300.
