Gold Surges to Record Amid Market Shifts

Gold reached a record high and bonds rallied as global interest rates seemed poised for a drop. U.S. presidential candidate Donald Trump's comments affected stocks in Taiwan, while British inflation remained steady. The market showed mixed responses across different regions, with the technology sector seeing a positive earnings report from ASML.

Gold hit a record and bonds rallied on Wednesday as markets braced for expected global interest rate cuts. Meanwhile, stocks in Taiwan slipped after U.S. presidential candidate Donald Trump expressed lukewarm support for the island's defence.

Sterling gained slightly when British inflation held at 2% year-on-year as predicted. In contrast, FTSE futures saw a 0.2% rise and the S&P 500 futures dipped 0.2% despite the cash index hitting a record high. MSCI's broad Asia-Pacific index was stable; however, Japan's Nikkei dipped by 0.4%.

Taiwan's TSMC lost nearly $30 billion in market value after Trump's remarks, although it wasn't clear what his exact plans were. His selection of J.D. Vance as running mate suggested China would be a major focus in his foreign policy.

In China, stocks remained subdued for the second consecutive day. The Taiwan dollar fell to a two-week low, and China's yuan steadied at 7.2673 per dollar as markets awaited news from a crucial leadership meeting in Beijing.

Brent Donnelly from Spectra Markets predicted a bullish outlook for USD should Trump win, citing possible tariffs and higher deficits. Elsewhere, chipmaking equipment supplier ASML reported positive earnings, hinting at a higher stock opening.

New Zealand's shares reached a high after favorable inflation data, yet the rates market dipped, and the currency rose. U.S. Treasury yields fell, driven by optimistic inflation reports, with markets fully pricing a U.S. rate cut for September.

Lower yields propelled gold past $2,450 per ounce, hitting a record $2,482 in Asia. Analysts think gold has a positive outlook despite uncertainties. The Japanese yen remained steady, while the euro held firm.

Oil prices dipped over declining demand signals from China. Brent crude futures dropped to $83.64 per barrel, with U.S crude futures at $80.69 per barrel. (Editing by Sam Holmes and Kim Coghill)

(With inputs from agencies.)