Asian Stocks Slide as Gold Plunges and Dollar Strengthens
Risk sentiment weakens after Wall Street volatility, yen softens and gold‑silver sell‑off accelerates
US, Jan 02 : Asian equity markets fell on Monday as losses in precious metals deepened and the US dollar gained broader strength, reflecting cautious investor sentiment after a volatile finish on Wall Street. Benchmark Asian shares dropped about 0.5 per cent and Nasdaq 100 futures weakened sharply, underscoring mounting pressure across global markets.
The yen weakened against major currencies, amplifying currency market moves and adding to risk aversion. The dollar’s strength followed strong gains late last week, fuelled by investor reaction to the nomination of Kevin Warsh as the next Federal Reserve chair a move markets interpreted as likely to temper prospects of aggressive rate cuts.
Precious metals were under notable pressure, with gold extending recent losses and silver continuing a steep correction after historic declines last week. Analysts pointed to profit‑taking and a firmer dollar as key drivers of the rout, which has seen bullion markets unwind earlier speculative positions.
In currencies, the dollar also strengthened against the Australian and New Zealand dollars following the Fed nomination, while the Japanese unit remained weak after comments from Japanese leaders highlighting export advantages from a softer yen.
The market downturn comes ahead of a series of major macroeconomic events this week, including policy decisions by the European Central Bank and the Bank of England, as well as key US economic data and a busy corporate earnings calendar, which are expected to influence direction in global financial markets.
