Asia-Pacific markets were also trading mixed on Wednesday, where several indexes were expected to close earlier than usual due to the holiday of Christmas Eve.
Japan’s Nikkei 225 increased 0.14 percent, and the Topix traded around the flatline. Japanese public broadcaster NHK stated on Wednesday that Japan was going to issue approximately 29.6 trillion yen (about $190 billion) in new government bonds to fund its fiscal 2026 budget.
The 30-year Japanese government bond yield increased by over 2 basis points to 3.454 percent, the highest level since 1986. Yields on the 20-year JGBs surged a little under one basis point to 2.992 percent.
Japan’s Sapporo Holdings shares gained a little less than 1 percent as reports indicated that the beverage producer was to sell its real estate to a group of investors headed by NHK under KKR and PAG for over 400 billion yen ($2.57 billion).
Therefore, the Kospi of South Korea increased 0.2 percent, and the small-cap Kosdaq was down by 0.2 percent. The South Korean won had increased by 1 percent to 1,462.3 against the greenback as the South Korean national pension fund was reported to be conducting strategic foreign exchange hedging operations, according to Reuters, citing what was termed as being close to the issue.
However, shares of South Korean battery materials maker EnChem rose by over 10 percent after a domestic newspaper reported that the company had a supply agreement with Contemporary Amperex Technology Co in China worth approximately Korean won 1.5 trillion (about $1.03 billion).
The Hang Seng index of Hong Kong increased by 0.1 percent, and the CSI 300 of mainland China was unchanged. Therefore, Australia’s S&P/ASX 200 slipped 0.33 percent, snapping a four-day streak of gains. Hong Kong and Australian markets are expected to close early.
Spot gold prices reached another record on Wednesday, surging above $4500 per ounce for the first time to above $4500 per ounce due to the weaker dollar, geopolitical tensions, and the U.S. Federal Reserve rate-cut expectations. Gold has recorded a succession of all-time highs this year, rising by more than 70 percent year to date.
Meanwhile, the Platinum shot up to the highest point in history, topping $2,300 an ounce.
Mizuho Securities’ Head of Asia ex-Japan Macro Research, Vishnu Varathan, said, “Gold has blown past $4,500, Silver is flirting with $72, and Platinum is chasing $2400; all of which are arguably benefitting from the allure as hedges of USD debasement.”
Data from LSEG revealed that the index of the U.S. dollar has lost nearly 10 percent since the beginning of the year. The U.S. futures were trading along the flat line in early Asian hours.
The stock of the U.S. improved in a fourth consecutive session overnight, with artificial intelligence names performing well in a week that is shortened due to the holidays.
The S&P 500 gained 0.46 percent, ending at a record level of 6,909.79. The broad market index is now down below its intraday all-time high of 6,920.34.
The Nasdaq Composite surged 0.57 percent to end at 23,561.84. The index was lifted by gains in tech giants Nvidia and Broadcom, which increased by about 3 percent and over 2 percent, respectively. Thus, the Dow Jones Industrial Average rose 79.73 points, or 0.16 percent, and settled at 48,442.41.
