Investing.com-- Gold prices edged higher to an 11-week high in Asian trading on Wednesday, extending gains for a third consecutive session as safe-haven demand grew amid U.S. tariff fears under President Donald Trump’s administration.

Spot Gold rose 0.2% to $2,749.29 per ounce, its highest level since early November, while Gold Futures expiring in February gained 0.2% to $2,766.57 an ounce by 01:45 ET (06:45 GMT).

The yellow metal was set for a third straight day of gains, as traders remained cautious while trying to gauge Trump’s policies, which are expected to elevate inflation. Gold is seen as a hedge against inflation.

The dollar had fallen sharply on Monday after Trump avoided details on the imposition of U.S. trade tariffs, further supporting gold prices. 

Bullion supported by ‘safe-haven’ demand amid global uncertainity

The precious metal, traditionally viewed as a safe-haven asset, has maintained its price above a one-month peak roughly since last week. This reflects that markets are bracing for global uncertainty as Trump’s policy announcements and tariff declarations are expected to influence market dynamics. 

Trump said on Tuesday he is considering imposing 10% tariffs on Chinese imports from February 1, and also vowed to hit the European Union with tariffs.

The increased tariffs will likely result in reduced trade imbalances and higher inflation, which are both seen as dollar-positive.

A stronger dollar typically drives gold prices lower because it makes the metal costlier for buyers using other currencies.

The US Dollar Index rose 0.2% in Asian trade on Wednesday, after closing largely unchanged a day earlier. It fell more than 1% on Monday as Trump avoided tariff announcements.

Traders are closely monitoring Trump’s moves to assess their impact on gold's trajectory.

Other precious metals were muted on Wednesday. Platinum Futures were unchanged at $968.45 an ounce, while Silver Futures were steady at $31.51 an ounce.

Copper prices drop further on tariff fears

Copper prices fell, continuing their subdued performance after Trump’s inauguration, as a combination of anticipated U.S. tariffs, and prospects of a stronger dollar, weighed on the red metal.

During periods of escalating tariffs and trade tensions, copper prices have historically declined due to reduced demand from China, the world's largest copper consumer.

Benchmark Copper Futures on the London Metal Exchange fell 0.6% to $9,232.50 a ton, while February Copper Futures declined 0.9% to $4.3015 a pound.

(Reuters) - Indonesia is close to a deal with Apple Inc (NASDAQ:AAPL) for an investment plan that could lift a ban on iPhone 16 sales in the country, investment minister Rosan Roeslani told Bloomberg News on Tuesday.

"Hopefully within one or two weeks this issue can be resolved", Roeslani told Bloomberg Television in Davos, Switzerland.

Apple did not immediately respond to a request for comment. The Indonesian government could not be reached for a comment.

Last year, Indonesia banned sales of iPhone 16 after Apple failed to meet requirements that smartphones sold in the country should comprise at least 40% locally-made parts.

Apple has no manufacturing facilities in Indonesia, a country of about 280 million people, but has since 2018 set up application developer academies.

Investing.com-- Most Asian stocks rose on Wednesday, with technology shares in the lead after OpenAI announced a massive partnership to build more artificial intelligence infrastructure in the U.S.

But Chinese markets lagged, falling sharply after U.S. President Donald Trump raised the prospect of increased trade tariffs on the country by as soon as February. 

Focus this week is also on a Bank of Japan meeting, where the central bank is expected to raise interest rates amid improving economic growth and rising inflation. 

Asian markets took positive cues from Wall Street, which closed higher on strength in tech stocks. U.S. stock index futures rose in Asian trade, with blowout earnings from Netflix Inc (NASDAQ:NFLX) adding to the positive sentiment. Netflix surged over 10% in aftermarket trade. 

Asian tech surges as OpenAI announces $500 bln partnership 

Tech-heavy Asian bourses were the best performers in Asia on Wednesday, with Japan’s Nikkei 225 index adding 1.5%, while South Korea’s KOSPI rose 0.6%.

Chipmaking stocks including Advantest Corp. (TYO:6857), Tokyo Electron Ltd. (TYO:8035), and SK Hynix Inc (KS:000660) rose between 2.2% and 4%. Japan’s SoftBank Group Corp. (TYO:9984), which is a key partner in the new OpenAI venture, rallied over 7%, while TSMC (TW:2330)- the world’s biggest contract chipmaker- rose over 2% in Taiwan trade. 

Sentiment towards tech was boosted chiefly by OpenAI announcing a $500 billion venture to build critical AI infrastructure in the U.S.

The venture- called “Stargate,” will involve several major tech companies, including Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Oracle Corporation (NYSE:ORCL), and is likely to boost demand for AI chips and data center infrastructure. 

Several Asian firms make up a key part of this supply chain. Optimism over AI also boosted broader tech stocks in Asia. 

Other Asian markets were mostly upbeat, tracking overnight strength in Wall Street. Australia’s ASX 200 index added 0.4%, while South Korea’s KOSPI rose 0.1%. 

Futures for India’s Nifty 50 index pointed to a mildly positive open, after the index slumped over 1% on Tuesday.

Chinese shares sink as Trump flags 10% tariffs 

China’s Shanghai Shenzhen CSI 300 fell 0.9%, while the Shanghai Composite shed 0.8%. Hong Kong’s Hang Seng index fell 1.3%. 

Trump said he could impose a 10% tariff on Chinese imports by as soon as February 1, citing concerns over the flow of illicit drugs, specifically fentanyl, from China into Mexico and Canada, and into the U.S.

Trump also threatened a 25% tariff on Canada and Mexico,

While markets had initially seen some relief from Trump not imposing any tariffs on day one of his presidency, his comments on Tuesday kept fears of a trade war squarely in play.

Still, Trump’s 10% tariff threat against China is far lower than the 60% he had threatened during his campaigning. China is also expected to release more stimulus measures in the face of U.S. trade headwinds.

Investing.com-- U.S. President Donald Trump said on Tuesday he is considering imposing 10% tariffs on Chinese imports from February 1, as he raised the possibility of increased duties on several major economies. 

Speaking at a White House event on his second day in office, Trump said he was considering the Chinese tariffs on concerns over the flow of illicit drugs, specifically fentanyl, from China to Mexico and Canada, and into the U.S. 

He raised the possibility of tariffs against Mexico and Canada on similar grounds, of around 25%. 

Trump also raised the possibility of tariffs against the European Union, on the grounds that they had trade imbalances with the U.S.

 Trump had campaigned on promises of steep tariffs to further the U.S.’ trade dominance, and had threatened to impose 60% tariffs on China and potentially 100% tariffs on Mexico and Canada. 

But he did not impose any tariffs through executive orders on his first day in office, as widely expected. The 10% tariffs threatened by Trump against China are also much lower than what he had promised when campaigning. 

By Sinéad Carew and Johann M Cherian

(Reuters) - Wall Street's main indexes rose on Tuesday, with the S&P 500 and the Dow closing at their highest levels in more than a month as investors assessed Donald Trump's first actions as U.S. president and were encouraged that he did not start his second term with blanket tariff increases.

Trump did not lay out concrete plans on the universal tariffs and additional surcharges on close trade partners as previously promised, but said he was thinking about imposing duties on Canadian and Mexican goods as early as Feb. 1.

While investors remain cautious about tariffs and the potential for a global trade war pushing inflation higher, brokerage Goldman Sachs lowered its forecast for the chances of a universal tariff this year to 25% from about 40% in December.

"There was a definite relief and a bit of surprise that tariffs weren't called out in the first round of executive actions that happened yesterday," said Carol Schleif, chief market strategist at BMO Private Wealth. "Markets are leaping to the conclusion, probably rightfully so, that the administration will take a more nuanced approach."

Investors hope the new administration will use the threat of trade levies as a negotiating tactic and take "a scalpel and not a sledgehammer to tariffs," Schleif said.

However, with trade policies still unclear, Schleif cautioned the market could face volatility if Trump puts out trial balloons on tariffs since the market has not had a 10% correction in a long time.

By Rahul Trivedi

BENGALURU (Reuters) - The South Korean economy barely grew last quarter as political chaos weighed on consumer spending, according to a Reuters poll of economists who expect the Bank of Korea to cut interest rates next month following a surprise hold last week.

Asia's fourth-largest economy grappled with uncertainty from President Yoon Suk Yeol's brief Dec. 3 martial law attempt, weakening economic sentiment and sluggish domestic demand which overshadowed the recovery in exports.

After only growing 0.1% in the July-September quarter, South Korea's economy likely expanded a seasonally adjusted 0.2% in Q4, according to the median forecast of 24 economists.

On an annual basis, the economy expanded 1.4% last quarter, according to the median forecast of 25 economists polled Jan. 15-20, barely changed from 1.5% in the previous quarter.

"We expect Q4 GDP data to show lackluster growth. High-frequency indicators point to domestic demand weakness, particularly in December as political events hurt consumer and business confidence," said Krystal Tan, an economist at ANZ.

Exports rose 6.6% in December compared to a year earlier. Semiconductor exports increased 31.5% during the same period.

The Bank of Korea (BOK) unexpectedly held its key rate steady on Jan. 16 to prevent the Korean won - which fell more than 12% last year - from weakening further, as political instability undermined investor confidence. The currency has seen a modest gain since the decision.

Although currency stability took precedence over domestic demand concerns in last week's meeting, BOK Governor Rhee Chang-yong indicated a rate cut was still on the table.

All 25 economists in a Reuters snap poll taken after the BOK's January decision expected it to lower borrowing costs by 25 basis points in February and median forecasts showed a total cut of 75 basis points by end-Q3.

"Even if the USD/KRW climbs back, as long as the current political situation does not worsen and it is driven more by the global dollar strength, the BOK is likely to deliver a rate cut in February," noted Min Joo Kang, senior economist at ING.

"After that, the BOK will keep a close eye on political developments, growth, inflation, and the won to gauge when to cut rates."

The BOK has lowered its 2025 economic growth projection from 1.9% in November to a range of 1.6% to 1.7%, reinforcing the rate cut view.

By Ethan Wang, Yukun Zhang and Ryan Woo

BEIJING (Reuters) - The frugal trend that began in China during the economic disruption of the pandemic and deepened amid the crisis in the property market is intensifying as Gen Z shuns government calls to spend, spend, spend and doubles down on saving.

On China's Instagram-like Xiaohongshu, or RedNote as it is known in the West, many under-30s are swapping notes on how to spend less on office lunches and shop on the cheap.

Influencers are also sharing tips on turning financial discipline into a lifestyle. Posts on how to save money total more than 1.5 million with more than 130 million views.

"I feel that the economy is quite bad, and it seems like it's hard for everyone to make money, so I think it's important to protect my own wallet," said Ava Su, who joined Alibaba (NYSE:BABA) after graduating just over six months ago and earns a relatively comfortable salary.

Su, 26, who sees the internet industry as "unstable", said she had cut back on impulse spending and had a long-term plan to save up 2 million yuan ($273,512) - 100 times her monthly salary.

According to data from Yu'e Bao, a popular online money market fund on the Alipay payment app, users born after 2000 each made an average of 20 deposits a month as of the end of 2024, double the number of May.

The May figure was itself 10 percent higher than the previous year. Yu'e Bao also said the funds each person had in their account that month was nearly 3,000 yuan, 50% more than the same month the previous year.

Some economists warn entrenched saving could hollow out demand just as policymakers are counting on domestic consumption to bolster China's gross domestic product. Sustained pessimism, which has already led to falling consumer prices from cars to bubble milk tea, will also dent the longer-term potential of the world's second-biggest economy.

The situation is a stark contrast to the free-spending attitudes of the so-called "moonlight" generation, a term used to describe those born in the 1980s and 1990s.

They saw only expanding job opportunities, rising incomes, and a quality of life that kept on improving, said Ho-fung Hung, professor in political economy at Johns Hopkins University, and were known for spending their entire salary by the end of every month.

But COVID-19, the economic slowdown and the government's crackdown on tech companies and other parts of the private sector made today's young people feel they needed to prepare for the worst, he added.

"This loss of optimism is a first since the beginning of (China's) market reform in 1978," Hung said.

JOB INSECURITY

The pessimism means many young people are seeking "iron rice bowl" jobs at government departments or state-owned enterprises that they believe offer more job security.

Su said she planned to take the civil service exam at some point in the future.

Unemployment among the roughly 100 million Chinese aged 16-24 has remained elevated in the last two years.

The youth jobless rate hit an all-time high of 21.3% in June 2023, prompting officials to halt the release of the data series and "reassess" how numbers were compiled. The recalibrated youth jobless rate stood at 15.7% in December last year.

Lily Li, a 26-year-old high school English teacher from Shenzhen who started her latest job in September, saves 80% of her monthly salary of over 10,000 yuan ($1,364), dramatically cutting back on non-essentials like clothes or concert tickets.

She had aspired to work in the corporate world, but became a school teacher for the stability. Li said she still planned to look for another job in the next two to three years but was unsure if she would find one.

Unlike the millennial philosophy of enjoying life to the fullest, the existential angst of China's Gen Z has only deepened alongside the country's economic malaise.

In the recent past, they spoke in Chinese of "tang ping", or "lying flat", and lamented a society beset by "involution", which refers to the state of being trapped in a meaningless rat race.

Those buzzwords followed the rise of "sang" culture, which celebrated defeatism, and "Buddhist youth", referring to young people's indifferent attitude to life.

"The 'involution' trend may intensify price competition and fuel disinflation as firms fight for weaker demand," said Gary Ng, senior economist at Natixis in Hong Kong.

"Such a consumption downgrade may hollow mid-price range products and services. China's long-term potential growth will decelerate."

China's 2024 gross domestic product grew 5.0%, data on Friday showed, but GDP growth is expected to ease over the next two years.

($1 = 7.3123 Chinese yuan renminbi)

Investing.com-- Asian stocks were a mixed batch in volatile trade on Tuesday after U.S. President Donald Trump did not impose steep tariffs on China in his first day in office, as feared, although he still raised the possibility of future tariffs. 

Risk-driven assets saw increased volatility as investors still remained largely on edge over Trump’s policies. The U.S. President signed a flurry of executive orders on his first day in office, ranging from decrees on increasing U.S. oil production to postponing a ban on social media app TikTok. 

U.S. stock index futures were mildly positive in Asian trade, but also saw increased volatility as Trump outlined plans to impose tariffs on China, Mexico and Canada. 

Asian stocks were nursing a weak start to 2025, although they gained some ground in recent sessions on hopes that Trump's tariffs would not be as strict as initially feared. Uncertainty over the tariffs remained in play, keeping investors to the sidelines.

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell slightly, while Hong Kong’s Hang Seng index added 0.8%. 

Australia’s ASX 200 rose 0.6%, while Singapore’s Straits Times index fell 0.6%. 

South Korea’s KOSPI fell 0.3%, while futures for India’s Nifty 50 index pointed to a negative open. 

Trump does not sign day-1 tariffs, but considering more duties 

Trump did not impose any trade tariffs on China, Mexico, and Canada- three countries that had been the subject of his ire in recent months- on the first day of his Presidency. 

But Trump signaled that he was re-evaluating U.S. trade, specifically that he would impose 25% tariffs on imports from Canada and Mexico. 

Trump also signed an order calling for an America First trade policy, instructing federal agencies to look into unfair trade practices by other countries while also reviewing current trade agreements. 

Trump’s orders spurred bets that he was still on track to impose higher trade tariffs against major economies, especially China. This came even as Trump held positive dialogue with his Chinese counterpart Xi Jinping last week. 

Increased trade tariffs stand to disrupt global trade, and could also draw retaliatory measures from major economies, sparking a renewed global trade war between the U.S. and other major economies.

But in Asia, China is expected to unlock even more stimulus in the face of a U.S. trade war, which could boost local growth.

Japan shares muted as BOJ looms 

Japan’s Nikkei 225 and TOPIX indexes moved little on Tuesday, with investors turning even more cautious towards the country before a Bank of Japan meeting later in the week.

The BOJ is expected to potentially hike interest rates further this week, especially as policymakers flagged the possibility of such a move in recent comments. 

While higher rates herald more pressure on Japanese markets, they also reflect increased BOJ confidence in the Japanese economy, which could make domestically-exposed sectors appear more attractive. 

But strength in the yen, amid recent speculation over rate hikes, is expected to pressure export-oriented sectors. 

WASHINGTON (Reuters) - President Donald Trump on Monday revoked a 2021 executive order signed by his predecessor Joe Biden that sought to ensure half of all new vehicles sold in 2030 were electric.

The 50% target, which was not legally binding, won the support of U.S. and foreign automakers. Trump also plans to direct agencies to reconsider rules mandating more stringent emissions rules that would require automakers to sell between 30% to 56% EVs by 2032 in order to comply.

LONDON/NEW YORK (Reuters) -The dollar extended its slide while crude prices curtailed their losses after U.S. President Donald Trump said on Monday he would tariff and tax countries to enrich Americans, overhaul the trade system and declare a national energy emergency.

COMMENTS:

RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY

"The biggest reaction is what appears to be the delay on the tariffs. Of all the proposals that are being put forward, that was the one that was most likely to affect the market more dramatically both for its inflationary-potential and just for whatever retribution that would have been for it."

"When you say you're going to study and try to negotiate it after you said that you will do it on Day 1, I think that's encouraging for the market."

"I also think that the market's view is that a lot of the proposals of the Trump team are aspirational. They may not necessarily implement them or they will implement them slowly. But they did help him get elected. And also some of the proposals need development. The new team is just in place and so the idea of doing it on Day 1 was not realy realistic. So that's why the market is a little relieved on that."

MATT GERTKEN, CHIEF GEOPOLITICAL STRATEGIST, BCA RESEARCH (Research Note)

"We expect significant tariffs early in his administration, whether this week or in the coming three months, since the U.S. labor market is strong and the midterm elections are far away. Weak global manufacturing also gives Trump the advantage.. Later the ability to ratchet up trade pressure will decline and Trump will risk losing the historic opportunity he has to remake US trade relationships."

EUGENE EPSTEIN, HEAD OF TRADING AND STRUCTURED PRODUCTS, NORTH AMERICA, MONEYCORP NE,W JERSEY

"There are so many people surprised in some ways of how things are shaping up even though the playbook that Trump basically runs is exactly the same as the first four years. He uses tariffs as a negotiating tool. It seems like he will impose tariffs regardless. The question is how severe. He has a lot of flexibility though in how he can impose them."

"In terms of the dollar reaction, it certainly weakened a bit today, but utimately, the dollar has strengthened substantially and I think today's action changes the playbook for the forseeable future. Just because he did not sign sweeping tariffs on day one doesn't mean that that's not going to happen. Everybody is on the negotiating table."

"As far as position-taking goes, it's very important to stay calm and cautious. This is just the first day and there really have not been been much answers just yet. Just because he hasn't announced sweeping tariffs the first day, it means absolutely nothing in terms of long-term tariff policies. Trade policies with specific numbers, even for him, will probably have to have some semblance of official negotiations before making a decision."

ZACHARY GRIFFITHS, SENIOR INVESTMENT GRADE STRATEGIST, CREDITSIGHTS, CHARLOTTE, NORTH CAROLINA

"The rally in the dollar and equity futures was due to expectations that Trump will..not be putting direct tariffs on any country today. That seems to be a relief trade."

"But if you look at what Trump said in his speech, it looks like he's quite firm on tariffs. I think there's more to come there."

"In terms of opting to not impose tariffs today and that being a market-positive, I'm a little skeptical of that and I am not sure that holds. If you have a more gradual, but still large tariffs in terms of percentage on a broad swath of countries, and if that is rolled out over time, that could be more challenging from an inflation-perspective for the Fed and could even result in policy being tighter for longer."

JAMIE COX, MANAGING PARTNER, HARRIS FINANCIAL GROUP

"Energy prices are going to come down in big way — consumers will rejoice in the savings and the inflation data in 6-7 months is going to look far better."

NIGEL GREEN, CEO, DEVERE GROUP

"The energy sector will undoubtedly be the most immediate beneficiary of this sweeping policy shift."

"Companies involved in oil and gas exploration, extraction, and infrastructure stand to gain as regulatory barriers are dismantled and investment in domestic production soars. Shares of U.S. energy giants and mid-cap firms are likely poised for significant upward momentum as the markets price in increased output and profitability."

"Global oil prices, already sensitive to geopolitical developments, could see sharp adjustments." 

GABRIELA SILLER PAGAZA, DIRECTOR FOR ECONOMIC ANALYSIS, GRUPO FINANCIERO BASE

"At the beginning of Trump's speech, the (Mexican peso) exchange rate was at 20.5751...At the end of the speech, it fell to 20.5289 pesos per dollar, which implies an appreciation of 4.6 cents or 0.22%, since there was no announcement of tariffs."

MARC CHANDLER, CHIEF MARKET STRATEGIST, BANNOCKBURN GLOBAL FOREX, NEW YORK

"There is a relief rally in foreign currencies, right now."

"Even though Trump did not specify, it's very clear that when he says that the U.S. is going to be a big auto manufacturer, he's talking about tariffs. So whether he imposes them in Day 1 or Day 5 or Day 10, I'm not sure it makes that much of a difference."

"The idea that he is going to be able to raise $2 trillion in tariffs seems to be an exaggeration. The U.S. imports only $1 trillion of goods, so what does he mean that he will be able raise $2 trillion and over what time period? It doesn't make sense."