Scotiabank lifts gold price forecast and upgrades Newmont, Barrick
Updates at 04:20 GMT with latest price moves, additional context
Investing.com-- Most Asian stock markets extended losses on Thursday, with shares in Japan and China leading declines, as Washington reportedly ratcheted up trade tensions with Beijing again.
Meanwhile, South Korean equities reversed course to drop over 1% following record peaks earlier in the day, after the country’s central bank held interest rates steady as widely expected.
The regional selloff also took cues from Wall Street’s overnight decline, where mixed earnings reports, including a sharp drop in Tesla’s profit, weighed on investor sentiment.
U.S. stock index futures tarded largely unchanged as of 04:20 GMT.
US reportedly ramps up trade tensions with China again
Donald Trump’s administration is reportedly considering a plan to restrict a broad array of software-powered exports to China, including laptops, jet engines, and other high-tech products, in response to Beijing’s latest rare earth export restrictions.
A Reuters report said that the measures remain under discussion and may be announced as leverage rather than immediately enforced.
The renewed trade tensions come ahead of a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping. While Trump has expressed optimism about the talks, he also acknowledged that a meeting may not take place.
The move underscores the fragile state of U.S.-China trade relations and risks roiling global markets further.
China’s blue chip Shanghai Shenzhen CSI 300 traded 0.6% lower, while the Shanghai Composite declined 0.7%.
Hong Kong’s Hang Seng edged down 0.2%, dragged by the Hang Seng TECH sub-index dropping 0.8%.
Nikkei falls further after record rally, KOSPI hits fresh peak
In Japan, the Nikkei 225 index dropped 1.5% on Thursday, extending losses after reaching a record high earlier this week. The broader TOPIX index fell 0.5%.
The recent rally had been fueled by optimism surrounding new Prime Minister Sanae Takaichi’s economic policies, but concerns over profit-taking and the sustainability of gains prompted selling.
A Reuters report on Wednesday showed that Takaichi is preparing a large-scale economic stimulus package aimed at curbing inflation and supporting households. The package is expected to surpass last year’s 13.9 trillion yen plan, focusing on anti-inflation measures.
South Korea’s KOSPI index slumped 1%, reversing course after edging higher to hit a fresh record high of 3,895.09 points.
The Bank of Korea kept its key interest rate unchanged at 2.5% for the third consecutive meeting, but signaled another cut in the next three months. The decision was in line with market expectations, with some analysts anticipating a rate cut in November.
Elsewhere, Australia’s S&P/ASX 200 and Singapore’s Straits Times Index were largely unchanged.
India’s Nifty 50 rose 0.7% on Thursday, largely bucking the regional trend.
Moreover, investors cautiously await the U.S. Consumer Price Index (CPI) data, which will be closely monitored ahead of the Federal Reserve’s policy meeting next week, where a rate cut is widely expected.