Market Update
The median rent for a one-bedroom apartment in Hong Kong is projected to be $2,421 by 2025.
On Wednesday, gold spot prices surged to $4,000 for the first time, driven by a strong demand for secure assets. According to Vivek Dahl, who leads the commodities sector at Australia’s Commonwealth Bank, this increase likely stems from heightened concerns following the shutdown of U.S. government agencies and the resignation of French Prime Minister Sebastian Recorgne.
This shift comes in the wake of a summer marked by uncertainty over U.S. tariffs that rattled the global economy.
In the Asia-Pacific region, stock markets remained steady, breaking away from the recent declines on Wall Street, especially after the World Bank raised its growth forecast for the region. However, Hong Kong’s Hang Seng Index experienced a drop of 1.01%.
In terms of specific stocks, CF Pharmatec saw its stock price increase by over 224% following its debut in Hong Kong. The company specializes in pharmaceuticals, particularly focusing on respiratory diseases. It listed at a price of HK$14.75 per share amidst a revival of Hong Kong’s IPO market, which has reportedly raised $14.1 billion in the first half of the year.
The Japanese market showed mixed results, with the Nikkei Stock Average remaining relatively unchanged but the Topix index rising by 0.66%. The Japanese yen slipped 0.38% against the dollar, trading at 152.48, after recently dipping into the $150 range.
Meanwhile, Australia’s ASX/S&P 200 index fell by 0.3%. It’s worth noting that markets in mainland China and South Korea were closed due to public holidays.
On another note, the Reserve Bank of New Zealand announced a reduction in its base interest rate by 50 basis points, bringing it down to 2.5%. The bank released a statement mentioning that economic activity had been sluggish until mid-2025, partly due to domestic supply chain issues and the uncertainties surrounding global economic policies. The New Zealand dollar fell by 0.9%, reaching $0.5746 against the U.S. dollar.
Additionally, the Bank of Thailand is expected to release its policy decisions today.
In the U.S., there was a notable downturn in the three major stock indexes. The S&P 500 struggled on Tuesday, facing pressure from Oracle’s stock as concerns about the profitability of AI investments grew. Investors were also keenly watching for updates from the ongoing federal government situation, now entering its second week of shutdown. The broad market index decreased by 0.38%, ending at 6,714.59, while the Nasdaq Composite fell 0.67%, closing at 22,788.36. The Dow Jones Industrial Average dropped 91.99 points, or 0.2%, to finish at 46,602.98.
