Asia Stocks Slip on Alibaba Rout as Gold Nears $4,700
As of 2026-08-24 12:00 SGT
Key points
- USD/JPY held little changed near 158.93, with a soft Dollar Index (below 99.00) offset by Bank of Japan rate-hike bets; EUR/USD was similarly flat around 1.1684
- Asia-Pacific equities turned broadly lower into the afternoon: the Hang Seng dropped 2.12% intraday as Alibaba shares fell as much as 10% after unveiling a $10.2 billion share placement to fund its AI push, while the Nikkei 225 slipped 0.58% intraday
- Gold extended its rally to fresh three-month highs near $4,699.60 (+0.41%) on persistent US fiscal-credibility concerns tied to the Treasury's expanded bond-buyback program; WTI crude eased 1.61% to $85.66 as traders booked profits ahead of Washington's expected new Iran sanctions
- Iran's national security adviser warned Gulf states against joining the US "economic war," and Tehran separately warned of possible ship seizures in the Strait of Hormuz; weekend tanker traffic through the chokepoint thinned to fewer than 20 vessels, reportedly
- US-Canada trade talks collapsed on August 21, and Ottawa says retaliatory tariffs begin September 8, adding to a backdrop already unsettled by rising Treasury yields (10-year +4.2bp to 4.738%)
Market snapshot
| Instrument | Level | Change |
|---|---|---|
| USD/JPY | 158.93 | -0.01% |
| EUR/USD | 1.1684 | +0.05% |
| Nikkei 225 (intraday) | 65,634 | -0.58% |
| Hang Seng (intraday) | 25,457 | -2.12% |
| Dow futures | 53,343 | -0.02% |
| S&P 500 futures | 7,687.00 | -0.06% |
| Nasdaq 100 futures | 29,302 | -0.29% |
| Gold futures | 4,699.60 | +0.41% |
| WTI crude | 85.66 | -1.61% |
| Bitcoin | 76,979 | -0.96% |
| US 10-yr yield | 4.738% | +4.2bp |
Foreign exchange — Dollar soft, ranges hold
USD/JPY held in a narrow range near 158.93, little changed on the day after oscillating between 158.38 and 159.12 in the prior session, as Bank of Japan rate-hike bets continued to offset a broadly softer US Dollar Index, which slipped below the 99.00 mark on renewed US fiscal-credibility concerns. EUR/USD was similarly little changed, edging up 0.05% to 1.1684, holding inside its recent 1.1670-1.1712 band. In China, the PBOC set today's USD/CNY central parity (reference) rate at 6.7841, a touch weaker than the previous 6.7817 fix, consistent with the yuan's mild depreciation bias even as the softer dollar limited losses. With the Dollar Index under pressure and BoJ hike bets intact, USD/JPY looks likely to stay capped within its 158.38-159.12 band for the remainder of the Asian session.
Equities — Asia lower, Alibaba weighs
Asia-Pacific equities turned broadly lower after the Dow posted back-to-back weekly declines last week. The Hang Seng led losses, down 2.12% intraday, as Alibaba shares fell as much as 10% after the company unveiled a $10.2 billion share placement to fund its AI push, dragging the broader Hong Kong tech complex lower. The Nikkei 225 slipped 0.58% intraday, while US index futures were mostly little changed — Dow futures -0.02%, S&P 500 futures -0.06% — with Nasdaq 100 futures off a slightly larger 0.29% as investors positioned for a heavy week of data including the core PCE print, Nvidia's earnings and the Jackson Hole Symposium. Hong Kong's IPO pipeline stayed active even amid the selloff, with Shein reportedly targeting a $27 billion valuation for its planned listing. Expect Hang Seng Tech-led weakness to persist into tonight's NY open, with US futures likely to hold a tight range until then.
Macro — Yields climb, trade risk mounts
US-Canada trade talks collapsed on August 21, and Canadian Prime Minister Mark Carney says Ottawa's retaliatory tariffs will take effect September 8, adding a fresh cross-border trade shock to an already jittery macro backdrop. Treasury yields extended their climb, with the 10-year up 4.2bp to 4.738%, as investors continued to digest the Treasury's expanded bond-buyback program; prominent investor Ray Dalio said the move is a sign a US debt crisis is drawing closer and recommended gold. Expect the trade and fiscal headlines to keep yields and the dollar on edge through the rest of European trading, with focus turning to the August 26 core PCE print and Fed Chairman Warsh's Jackson Hole remarks later this week.
Commodities — Gold at three-month highs, oil eases
Gold extended its rally to fresh three-month highs, last near $4,699.60 (+0.41%), as fiscal-credibility concerns tied to the Treasury's bond-buyback program kept the debasement trade alive; Goldman said resilient options demand could push bullion past its $4,900 forecast, while India's gold imports more than doubled in July to $4.16 billion from $1.97 billion in June. WTI crude eased 1.61% to $85.66, slipping back toward the prior session's $85.60 low as traders booked profits ahead of Washington's expected new sanctions on Iran, even as thin weekend Hormuz tanker traffic kept a geopolitical risk premium in the background. Gold should stay bid as the Asian session runs its course on the debasement narrative, while WTI's downside looks limited unless the sanctions announcement disappoints.
Geopolitics — Iran tensions escalate
Iran's national security adviser, Mohsen Rezaei, warned Gulf states against joining what Tehran calls Washington's "economic war," vowing to prevent oil exports from leaving the region if the pressure campaign continues. Iran separately warned of possible ship seizures in the Strait of Hormuz ahead of Treasury Secretary Bessent's planned new sanctions announcement, as both sides missed the 60-day ceasefire window, closing off the formal truce mechanism that had paused the six-month conflict. Weekend tanker traffic through Hormuz thinned to fewer than 20 vessels, according to Kpler data, as Iranian and US blockades restrict the chokepoint, even as last week's reporting pointed to sizeable covert US-organized tanker flows via Oman, according to unconfirmed reports. With the ceasefire mechanism now lapsed and new sanctions due imminently, Hormuz-linked oil-supply risk should stay elevated as attention turns to tonight's NY open.
Upcoming events
| Time (SGT) | Region | Event | Focus |
|---|---|---|---|
| 08/25 02:00 | US | Treasury Sec Bessent Speaks | New Iran sanctions details expected |
| 08/26 09:30 | AU | CPI y/y (forecast 3.3%) | Inflation read, AUD driver |
| 08/26 20:30 | US | Core PCE Price Index m/m (forecast 0.2%) | Fed's preferred inflation gauge |
| 08/28 22:00 | US | Fed Chairman Warsh Speaks | Jackson Hole keynote, week's key catalyst |
| 08/28 22:00 | US | Prelim Benchmark Payrolls Revision | Labor-market data-quality watch |
| 08/29 00:15 | All | Jackson Hole Symposium | Global focus on the policy outlook debate |