Asia Slips, Gold Near 3-Month Highs as Iran Sanctions Loom
As of 2026-08-24 17:00 SGT
Key points
- Asia closed broadly lower, with the Hang Seng's 1.89% slide compounded by Alibaba's plunge after its AI-funding share placement.
- Alibaba shares tumbled roughly 8%-10% after unveiling a $10.2 billion share placement to fund its AI investment push.
- US index futures were mixed to lower, extending last week's back-to-back weekly declines in the Dow.
- Gold held near three-month highs above $4,650 on the dollar-debasement trade tied to the Treasury's expanded buyback program.
- Oil eased as markets awaited details of Treasury Secretary Bessent's "toughest" sanctions on Iran, due later tonight.
Market snapshot
| Instrument | Level | Change |
|---|---|---|
| USD/JPY | 159.19 | +0.16% |
| EUR/USD | 1.1667 | -0.09% |
| Nikkei 225 (close) | 65,528 | -0.74% |
| Hang Seng (close) | 25,517 | -1.89% |
| Dow futures | 53,377 | +0.04% |
| S&P 500 futures | 7,681.75 | -0.12% |
| Nasdaq 100 futures | 29,218 | -0.58% |
| Gold futures | 4,699.10 | +0.40% |
| WTI crude | 85.00 | -2.37% |
| Bitcoin | 77,038 | -0.89% |
| US 10-yr yield | 4.738% | +4.2bp |
Foreign exchange — Dollar firm into Europe's open, yen capped near recent highs
USD/JPY edged up 0.16% to 159.19 in Asia trade, pushing just above the prior session's 159.12 high, while EUR/USD was little changed, dipping 0.09% to 1.1667 and slipping just below the prior session's 1.1670 low as the dollar found a tepid bid heading into Europe's open. The resilience comes even as last week's expanded Treasury buyback had pressured yields and the dollar broadly, with positioning now turning toward the Jackson Hole Symposium later this week. With USD/JPY holding just above the 159 intervention-watch level, the tone into Tokyo's open tomorrow (Aug. 25) should stay cautious.
Equities — Asia lower, US futures mixed after a rough week
The Nikkei 225 closed down 0.74% at 65,528 and the Hang Seng fell 1.89% to 25,517, dragged in part by Alibaba's slide after its $10.2 billion AI-funding share placement. US index futures were mixed: Dow futures were roughly flat at 53,377 (+0.04%), while S&P 500 futures eased 0.12% and Nasdaq 100 futures fell 0.58%, extending the back-to-back weekly declines that closed out last week on Wall Street. Once New York opens tonight, follow-through selling in AI-linked and mega-cap tech names bears watching after last week's losses.
Macro — Bond-market anxiety builds into Jackson Hole
The US 10-year Treasury yield stood at 4.738%, up 4.2 basis points on the day, with bond-market anxiety persisting ahead of new Fed Chair Kevin Warsh's Jackson Hole keynote later this week — a speech investors hope will offer a "comfort blanket" after the Treasury's decision to double its debt buyback program stoked fiscal-credibility concerns. Singapore's own inflation print, out earlier today, hit its highest level in nearly two years but still undershot expectations, adding a local data point to the broader inflation debate. Tonight's calendar features Bessent's Iran-sanctions announcement and US CB Consumer Confidence data, both of which should sharpen the direction of yields and the dollar before the week's heavier releases — Core PCE and GDP — land on Aug. 26. Ahead of tonight's US data, the market's focus stays squarely on whether Warsh leans hawkish or dovish at Jackson Hole, with bond-market anxiety the dominant cross-asset driver.
Commodities — Gold underpinned by debasement trade, oil pressured by sanctions wait
Gold futures held near three-month highs, adding 0.40% to $4,699.10, extending a rally that has taken bullion from around $4,000 in mid-July toward $4,600-plus on renewed dollar-debasement demand tied to the Treasury's buyback expansion. WTI crude fell 2.37% to $85.00, below the prior session's 85.80 low, as investors await details of the Iran sanctions and Hormuz tanker traffic thinned to fewer than 20 vessels over the weekend, per Kpler data. Gold's debasement narrative looks intact regardless of tonight's headlines, while oil's next leg hinges on whether the sanctions go beyond the "toughest ever" rhetoric.
Geopolitics — Iran sanctions and Canada trade war escalate risk
Iran warned it could seize shipping in the Strait of Hormuz as it braces for Bessent's sanctions announcement, with weekend tanker traffic through the chokepoint already thinned to fewer than 20 vessels. Separately, US-Canada trade talks collapsed over the weekend after Washington's 50% tariffs on Canadian goods took effect, with Canadian Prime Minister Mark Carney vowing retaliatory tariffs starting Sept. 8. Risk premia in oil and safe havens are likely to stay elevated until the sanctions details, and Tehran's response, become clear.
Upcoming events
| Time (SGT) | Region | Event | Impact |
|---|---|---|---|
| 08/25 02:00 | US | Treasury Sec Bessent Speaks | Medium |
| 08/26 09:30 | AU | CPI y/y (forecast 3.3%) | High |
| 08/26 20:30 | US | Core PCE Price Index m/m (forecast 0.2%) | High |
| 08/26 20:30 | US | GDP q/q (forecast 1.5%) | High |
| 08/28 22:00 | US | Fed Chairman Warsh Speaks | High |
| 08/29 00:15 | All | Jackson Hole Symposium | High |