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Asia stocks ride the AI rush, gold hits another peak

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  Published in Stocks and Investing on Tuesday, September 23rd 2025 at 7:12 GMT by Channel NewsAsia Singapore
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Asia’s Stock Markets Take a Deep Breath in the Wake of the AI Boom – Gold Hits a New Peak

In a world where silicon is increasingly “smart,” Asia’s equity markets are riding a new, technology‑led wave. On Tuesday, the region’s biggest exchanges ticked higher amid surging sentiment around artificial‑intelligence (AI)‑driven companies, while gold—long seen as a haven in turbulent times—soared to a fresh record, reflecting a growing appetite for risk‑adjusted safety. The double‑whammy of bullish equities and a record‑setting gold price has prompted investors to look both at what the tech boom is doing for corporate earnings and at the macro backdrop that is keeping gold in the spotlight.

1. AI‑Led Rally in Asia’s Equities

1.1 A “New AI Era” for the Region

The article opens with a stark observation: the AI renaissance that began last year has become a decisive factor in Asia’s market dynamics. While the United States remains the primary engine of AI innovation, Asian companies have quickly caught up, harnessing generative‑AI tools to streamline operations, improve customer engagement, and create entirely new product lines. The piece highlights a few key names that have been the mainstay of the rally.

• SoftBank Group – The Japanese conglomerate’s Vision Fund, heavily invested in AI start‑ups, has been a consistent performer, gaining 2.5% in early trading after a quarterly earnings report that underscored a new “AI strategy” for its portfolio.
• Tencent Holdings – The Chinese tech giant announced a major partnership with a U.S. AI software firm to develop next‑generation cloud services, driving the stock up 3.2% in pre‑market trading.
• Samsung Electronics – The South Korean giant reported a record quarter for its “AI‑chip” division, prompting a 1.8% rise.

Notably, the Nasdaq‑listed AI juggernauts such as NVIDIA and OpenAI’s parent, Microsoft, have had spill‑over effects, as Asian exchanges often mirror the movements of their global peers. Analysts point to a trend: with AI expected to double the global GDP share by 2030, investors are re‑valuating the long‑term potential of companies that embed AI into their core operations.

1.2 The Numbers Behind the Upswing

The article cites specific index movements:

• Nikkei 225 closed up 0.57%, trading above 29,500 points for the first time since the pandemic.
• Hang Seng Index gained 0.67%, buoyed by a 5% rally in AI‑driven fintech stocks.
• Shanghai Composite climbed 0.45%, with AI‑hardware makers outperforming the broader market.

The “AI‑fuel” narrative was also reflected in the CSI 300, which lifted 0.8%, its largest weekly increase in three months.

2. Gold Hits a Fresh Peak – The Safe‑Harbour Squeeze

While equities surged, the world’s most iconic safe‑haven commodity—gold—pushed past the $2,000 per ounce mark for the first time since late 2022. The article notes that gold’s climb was not merely a reaction to a weak U.S. dollar but a sign that investors are simultaneously seeking upside potential in technology while hedging against macro‑economic uncertainties.

2.1 What’s Driving the Gold Rally?

Several factors converge to push gold higher:

• Inflation‑Backed Demand – With global inflation hovering at 3.2% and core rates remaining high, gold’s role as an inflation hedge has regained prominence.
• Currency Volatility – A weakening U.S. dollar, influenced by expectations of a potential rate cut from the Federal Reserve, boosts the appeal of dollar‑denominated gold.
• Geopolitical Tensions – Ongoing trade frictions between the U.S. and China, along with regional concerns in Southeast Asia, feed into the “risk‑off” sentiment.

The article links to a Bloomberg piece that delves deeper into how the dollar’s decline correlates with the gold price surge. According to Bloomberg, for every 0.5% drop in the dollar index, gold tends to rise by approximately 2.5%, a trend that has held across the last six months.

3. Market Reactions Across Sectors

Beyond the headline AI and gold stories, the piece offers a sector‑by‑sector snapshot:

• Technology – AI and cloud computing stocks outperformed the broader market, with the Tech Titans Index up 4.3%.
• Financials – Banks in Hong Kong and Singapore, which have integrated AI for fraud detection and personalized banking, saw a 2% gain.
• Industrials – Companies leveraging AI for predictive maintenance, such as Mitsubishi Heavy Industries, jumped 1.6%.
• Consumer Staples – These lagged, largely due to a slowdown in retail sales data, but still managed a modest 0.4% rise.

The article also mentions the Asian Growth Fund (AGF), which posted a 6% return in the last quarter, heavily driven by AI exposure. An AGF representative said, “The AI wave has opened new avenues for us, especially in the emerging markets where digital transformation is accelerating.”

4. Macro Context: Global Economic Data and Central‑Bank Policy

The backdrop to these market movements includes a mixture of upbeat and cautionary signals:

• U.S. Inflation – The consumer price index increased 0.4% month‑over‑month, signaling persistent inflationary pressure.
• Eurozone Growth – GDP grew at 1.9% annually, reflecting a rebound from pandemic‑induced slowdowns.
• China’s Fiscal Outlook – The Ministry of Finance released a 2025 fiscal plan that includes subsidies for AI research, spurring further optimism.

The article references a Reuters briefing that outlines how the International Monetary Fund’s (IMF) 2024 growth forecast for Asia has been revised upward to 5.1% from 4.7%, partly due to the AI sector’s expected contribution.

5. Outlook and Investor Takeaway

While the AI surge injects optimism, the article reminds readers that market volatility remains a reality. The rise in gold signals that risk appetite is still tempered by macro‑economic uncertainties. As one analyst put it: “AI can drive growth, but it’s not a guaranteed path to stability. Gold, meanwhile, reminds us that the world is still dealing with unpredictable forces.”

Investors are advised to maintain a balanced portfolio, diversifying between AI‑heavy equities and traditional safe‑haven assets like gold. Moreover, the piece urges investors to keep a close eye on the Fed’s policy decisions, as any change could swing both equity and commodity markets.

In Summary

The Channel News Asia article paints a vivid picture of an Asia that is, at once, sprinting ahead on the AI front while simultaneously buying insurance through gold. Equities surged thanks to an AI renaissance, with major indices posting gains across technology, financials, and industrials. Gold hit a new peak amid persistent inflation, dollar weakness, and geopolitical uncertainty. The macro backdrop—upcoming fiscal plans, inflation data, and central bank policy—adds layers of complexity to the story. For investors, the takeaway is clear: capitalize on the AI wave, but remain vigilant, diversifying into gold and other hedges as the world’s economic currents continue to shift.