Asia: Gold glitters to new high as stocks mixed

GOLD climbed to a new record on Tuesday as investors sought out safe havens, while Japan’s Nikkei and the Hang Seng pushed higher waiting for Wall Street’s return after the Labor Day holiday.

The precious metal reached US$3,501.59 an ounce during early trading in Asia, soaring past its previous record of US$3,500.10 in April.

The run in gold prices comes as investors weigh up a weakened US dollar and the prospect of rate cuts by the Federal Reserve.

On Monday Chinese ecommerce giant Alibaba soared almost 20 per cent on bumper results and a surge in AI revenue, and its shares added another half per cent on Tuesday.

This boosted the Hang Seng by 2.2 per cent on Monday and the index was up 0.1 per cent on Tuesday while Shanghai also moved higher.

Chinese equities won support also from the Purchasing Managers’ Index – a key measure of industrial output – gaining on Monday.

“While US giants face mounting questions around AI monetization and stretched valuations, Chinese firms are showing tangible earnings lift from AI and cloud,” Charu Chanana at Saxo Markets told AFP.

The Nikkei lost 1.2 per cent on Monday as chip shares came under pressure but the index recovered some ground per cent on Tuesday.

Seoul moved higher with SK Hynix and Samsung Electronics recovering from losses on the back of worries about their chip plants in China.

Wall Street was shut on Monday for Labour Day, while the dollar traded mixed against main rivals.

Wall Street retreated from record highs on Friday as a key US inflation reading accelerated, giving the Fed less room to manoeuvre at the same time concerns mount over its independence. AFP