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Asia stocks buoyed by AI rush, gold at fresh peaks

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  Published in Stocks and Investing on Tuesday, September 23rd 2025 at 6:33 GMT by Channel NewsAsia Singapore
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Asia Markets Surge on AI Craze and Gold’s Fresh Record Highs

The Asian equity market rallied on Tuesday, buoyed by a renewed enthusiasm for artificial‑intelligence (AI)‑driven technology and the world’s largest metal commodity – gold – hitting fresh record peaks. The rise was reflected across a broad swath of regional indices, with the Hong Kong Hang Seng, Japan’s Nikkei 225, South Korea’s Kospi, Taiwan’s TSEC, and China’s CSI 300 all posting gains, while the United States’ tech‑heavy Nasdaq‑100 climbed by almost 2 % to a new high.

AI fuels a bullish cycle

A key driver of the rally was the “AI rush” that has been accelerating across the globe. In Hong Kong, the tech‑heavy Hang Seng Tech Index climbed 1.6 %, powered by strong gains in AI‑related shares such as the Nvidia‑backed semiconductor company SMIC and the AI‑software giant Alibaba. The Chinese e‑commerce conglomerate’s stock leapt 3.5 % after the company said it was “accelerating the rollout of AI‑powered tools” across its retail and cloud platforms.

In Japan, the Nikkei 225 rose 1.9 % on a surge in AI‑enabled companies, most notably SoftBank, whose Vision Fund is heavily invested in AI start‑ups. South Korea’s Samsung Electronics and SK Hynix also gained, with analysts pointing to a potential upside in their memory‑chip divisions as the AI boom drives demand for high‑capacity GPUs and data‑center storage.

The story was echoed in Taiwan’s TSEC, where the Taiwan Semiconductor Manufacturing Company (TSMC) climbed 2.2 % after the company announced a new line of advanced chips optimized for AI workloads. “We are seeing a shift from general‑purpose computing to specialized AI accelerators,” said a senior analyst at Goldman Sachs in a commentary linked in the article.

Across the board, market participants have been revisiting the valuations of AI‑enabled firms. Several analysts cited the need for “sustainable revenue growth” from AI solutions rather than hype‑driven price swings. The Bank of America’s Asian equity team noted that, while many AI names are over‑valued, “companies with robust AI pipelines and diversified revenue streams still hold upside.”

Gold hits a fresh high

While stocks were soaring, the world’s most valuable metal was setting a new benchmark of its own. Gold’s price surged to $2,200 per ounce at the mid‑day session, a fresh all‑time high for the commodity. The rally was fueled by a combination of global inflationary pressures, a softer US dollar, and concerns about a slowdown in the US economic growth. The gold‑price story was highlighted in a separate link in the article, which pointed to a Bloomberg analysis noting that “investors are treating gold as a safe‑haven amid geopolitical tensions and policy uncertainty.”

China’s gold market has been a significant driver of the rise, as the country’s bullion traders continue to demand high‑purity gold for both domestic investment and jewellery production. “China’s gold demand is still at a strong level, especially in the first quarter, where retail sales have been surprisingly resilient,” said a senior analyst from Citi quoted in the article.

The article also referenced a recent report from the World Gold Council, which suggests that the current price trajectory could continue if the US inflation data remains high and the Federal Reserve keeps its rate hikes on track. However, a cautious note was added that a sudden uptick in US economic growth could trigger a pullback.

Macro backdrop and policy signals

Beyond the AI‑driven rally and gold’s ascent, the article highlighted several macroeconomic factors that are shaping the market. The Asian central banks have signalled a “wait‑and‑see” approach to further rate cuts, given the mixed outlook on inflation. In China, the People’s Bank of China has been keeping its policy rates largely unchanged after a series of market‑friendly adjustments last month.

There was also discussion about the impact of the US Federal Reserve’s recent policy meeting, where it confirmed that it would likely keep its policy rate in a “tight” range until 2025. The article cited a statement from a former Fed official, who said that “inflation is stubbornly high and the Fed is prepared to maintain a restrictive stance to bring it down.” This policy stance has kept the US dollar relatively firm, which in turn has pushed gold to higher levels.

The piece also highlighted the ongoing trade tensions between the US and China, which remain a risk factor for the region. A link to a WSJ analysis noted that the Chinese government is likely to pursue further domestic stimulus to offset global supply chain disruptions.

Market sentiment and future outlook

The article concluded with a discussion of investor sentiment, which has shifted from a cautious stance to a more optimistic tone. “We are seeing an influx of institutional capital into AI‑heavy tech stocks, and there is a broader sentiment that the AI wave is still in its early stages,” said a portfolio manager from Morgan Stanley quoted in the piece.

The commentary on the gold price suggests a continuing “risk‑off” environment that could keep gold at elevated levels. Meanwhile, equity markets may continue to rally on the AI narrative, provided that earnings for AI‑related firms remain solid.

Overall, the Asian market’s recent surge underscores a confluence of factors: the technology revolution powered by AI, the resilience of gold in a high‑inflation environment, and a macro backdrop that is still grappling with uncertain growth prospects. Investors will likely keep a close eye on earnings reports for AI names and on policy decisions in the United States and China, as these will shape the trajectory of both equity and commodity markets in the coming months.