Asia markets steady after world bank upgrade, Gold surges to new peak

October 08, 2025 (MLN): Asian markets traded mixed on Wednesday as investors weighed global economic uncertainties, a historic rally in gold prices, and policy moves across the region.

Spot gold surged to an all-time high of $4,000 per ounce, driven by strong safe-haven demand amid mounting geopolitical and economic pressures.

The latest rally shows concerns over the U.S. government shutdown and the resignation of France’s Prime Minister Sebastien Lecornu, according to Vivek Dhar, head of commodities at the Commonwealth Bank of Australia.

The metal’s remarkable rise follows a turbulent summer marked by tariff-led volatility and slowing global growth, reinforcing investor flight toward safe assets.

Across the Asia-Pacific, stock performance diverged after the World Bank upgraded its regional growth forecast on Tuesday, offering a modest counterbalance to Wall Street’s overnight losses.

Hong Kong’s Hang Seng Index dropped 1.01%, despite excitement over the blockbuster debut of CF PharmTech, whose shares soared more than 224% on listing.

The specialty pharmaceutical company, focused on respiratory treatments, raised about $78 million in its IPO, pricing shares at HKD 14.75 apiece.

The strong debut stressed renewed momentum in Hong Kong’s IPO market, which has already raised $14.1 billion in the first half of 2025.

In Japan, the Nikkei 225 was little changed, while the Topix added 0.66%. The Japanese yen weakened 0.38% to 152.48 per U.S. dollar, after touching the 150-level earlier in the week.

Australia’s S&P/ASX 200 edged 0.3% lower, while markets in Mainland China and South Korea remained closed for holidays.

Meanwhile, the Reserve Bank of New Zealand (RBNZ) unexpectedly cut its benchmark interest rate by 50 basis points to 2.5%, citing persistent weakness in domestic activity and uncertainty in the global economy.

“Economic activity through the middle of 2025 was weak… showing domestic supply constraints and global policy uncertainty,” the RBNZ said in a statement.

The New Zealand dollar slipped 0.9% to $0.5746 following the rate decision.

Overnight in the United States, the three major indices closed lower as the government shutdown entered its second week.

The S&P 500 fell 0.38% to 6,714.59, breaking a seven-session winning streak, while the Nasdaq Composite declined 0.67% to 22,788.36. The Dow Jones Industrial Average shed 91.99 points, or 0.2%, to finish at 46,602.98.

Investors remained cautious as AI-related stocks, led by Oracle, dragged markets lower amid growing concerns about profitability in the artificial intelligence sector and political gridlock in Washington.

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