MARKET UPDATE

Asia stocks dip tracking Wall St weakness.

Most Asian stocks retreated on Wednesday tracking overnight losses on Wall Street amid growing uncertainty over the path of U.S. interest rates, with technology shares losing more ground after a strong rally in recent weeks.

Weak purchasing managers index data from Japan and hotter-than-expected Australian consumer inflation data also weighed on sentiment.

Chinese stocks were an outlier, clocking mild gains on some optimism over more stimulus measures from Beijing. Chinese tech shares also recovered some ground after declining earlier this week.

But most Asian stocks retreated in tow of overnight losses on Wall Street, after Federal Reserve Chair Jerome Powell flagged increasing economic risks and uncertainty over interest rates. S&P 500 Futures were flat in Asian trade, with focus turning to a slew of key economic prints due this week.

 

Gold prices steady near record high.

Gold prices steadied in Asian trade on Wednesday, remaining close to recent record highs as overnight comments from U.S. Federal Reserve Chair Jerome Powell sparked heightened caution over growth, inflation, and interest rates.

Gold and other precious metals benefited from increased haven demand, while sustained weakness in the dollar also kept metals mostly well-bid. Anticipation of more key economic readings this week also kept markets cautious, as did weak U.S. purchasing managers index data.

Spot gold rose 0.3% to $3,776.20 an ounce, while gold futures fell 0.2% to $3,808.50/oz by 01:39 ET (05:39 GMT).

Spot gold hit a record high of $3,791.1/oz on Tuesday, and remained close to the level after a strong run-up over the past week.

Fed Chair Powell on Tuesday evening flagged increased uncertainty over the U.S. economy, stating that there was no “risk-free path” towards cutting interest rates while curbing inflation and maintaining jobs growth.

While Powell did note that the labor market had weakened sharply in recent months, he also noted that inflation remained sticky, complicating the central bank’s plans to cut interest rates.

 

Dollar steadies after Powell reiterates caution.

The U.S. dollar edged up from its lowest level in close to a week on Wednesday after Federal Reserve Chair Jerome Powell struck a cautious tone on further easing overnight, although traders retained bets for two more interest rate cuts this year.

Australia’s dollar firmed after a hotter-than-expected headline reading of consumer inflation, less than a week before the Reserve Bank’s next policy decision.

New Zealand’s dollar was steady following the naming of a new central bank chief.

The U.S. dollar index, which measures the currency against six major rivals, added 0.1% to 97.361, attempting to claw back some ground after two straight losing sessions that saw it touch the lowest since Thursday at 97.198 overnight.

Markets are priced for quarter-point rate cuts at each of the remaining two Fed policy meetings this year. Another reduction is expected in the first quarter of 2026, broadly aligning with forecasts from Fed officials following a quarter-point cut on Wednesday of last week.

The dollar had bounced back from the lowest level since early 2022 at 96.224 after the Fed’s policy announcement and Powell’s subsequent news conference, which fell short of the market’s more dovish expectations following a recent, sharp weakening of the labor market.

 

 

 

 

 

 

 

 

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