On Tuesday, buoyed by the rebound in US stocks overnight, Asia-Pacific stocks generally rose, continuing the upward trend from Monday. However, international gold prices plummeted by over 1% during the day, once falling below $2,300 per ounce.
Tony Sycamore, a market analyst at IG Australia based in Sydney, stated: "The rebound momentum in Asia-Pacific stocks from yesterday may continue, but when US tech giants release their new round of earnings reports this week, the stock market gains will be affected, and the pace of increase is expected to slow down."
Japanese stocks fluctuated throughout the day and closed slightly higher. The Nikkei 225 index rose by 0.3%, closing at 37,552.16 points; the Topix index increased by 0.1%, closing at 2,666.23 points.
In terms of individual stocks, Fast Retailing rose nearly 2%, Shin-Etsu Chemical Industries increased by 1.5%, and Mitsui Sumitomo Financial Group, Itochu Corporation, and Keyence Corporation all rose by more than 1%.
Gold plummeted in the morning, once falling below the 2300 mark. As tensions in the Middle East eased and demand for safe-haven assets decreased, spot gold fell below $2,300 per ounce in the early morning on Tuesday, with a drop of 1.12%, now reporting at $2,302 per ounce.
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Media reports cited Nicholas Frappell, Global Head of Market at Sydney-based ABC Refinery, who said that the Iranian government's downplaying of its response to Israel and its implication of no retaliation have reduced the risk premium in the gold market. Additionally, after a historic surge recently, investors taking profits also put pressure on gold prices. Since February 2020, gold prices have risen by more than 50%, with nearly a 20% increase in just the past two months.
Asia-Pacific stock markets opened higher in the morning. The Nikkei 225 index opened high and then fell, currently down by 0.15%. The South Korean Composite Index rose by 0.2%, the Philippine stock index increased by 1%, and Indonesia's main stock index also rose by 1%.Bank of Japan Governor Haruhiko Kuroda stated that it is necessary to maintain accommodative monetary policy conditions for some time. Given that the underlying inflation rate remains below 2%, it is appropriate to maintain an accommodative monetary policy at present. If geopolitical risks and weak domestic demand lead to market turmoil, the Bank of Japan will respond by providing flexible and agile liquidity. If inflation aligns with expectations, reducing the degree of accommodation is feasible.
The Asia-Pacific foreign exchange market performed steadily.
The Japanese yen fluctuated higher against the US dollar, trading at 154.74; the Australian dollar edged up slightly against the US dollar, trading at 0.6462; the South Korean won was relatively stable, with the US dollar trading against the won at 1376.9.
The market widely expects the Bank of Japan to keep the benchmark interest rate unchanged on Friday, with investors watching for any signs of a reduction in dovish tendencies as the yen trades near a 30-year low. Japanese Finance Minister Shunichi Suzuki stated that he is prepared to intervene in the foreign exchange market if necessary.
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