Asian stocks climbed to a record, and the dollar held its losses as global investors favoured non-US assets amid policy unpredictability and geopolitical risks. Precious metals also set new all-time highs.
The MSCI Asia Pacific Index gained 0.4%, and a gauge of emerging-market stocks also hit a record high. Equity-index futures pointed to gains for US benchmarks, though of a smaller magnitude than in Asia, while contracts indicated a small loss for European shares.
The yen weakened 0.3% against the dollar after Bank of Japan Governor Kazuo Ueda said the central bank may conduct operations to ensure stable yield formation. The comments followed the BOJ’s decision to keep its policy rate unchanged at 0.75%, as expected.
The weaker US currency fuelled gains in precious metals, with gold climbing to a record above $4,965 an ounce. Silver moved within touching distance of $100 an ounce.
The moves point to a gradual unwinding of dollar exposure in favour of regional equities, drawn by more attractive valuations and stronger growth prospects.
This shift comes against a backdrop of rising policy uncertainty, including challenges to the Federal Reserve’s independence and renewed tariff concerns linked to tensions between the US and Europe.
German flash PMI, UK flash manufacturing PMI, and US flash manufacturing PMI are the main data points of the day.
