Morning brief: Asian shares advance as Yen slides; Gold hits record on rate-cut bets

Asian markets began the week on a firm footing, buoyed by technology-led gains on Wall Street, while gold surged to fresh record highs amid expectations of easier US monetary policy.

Elsewhere, China kept its benchmark lending rates unchanged despite weak economic data, and ride-hailing firms Uber and Lyft announced plans to trial driverless taxis in the UK with China’s Baidu.

Asian markets track Wall Street gains

Asian equities rose broadly on Monday, even as a holiday-shortened week dampened trading volumes in parts of the world.

Investors continued to channel funds into equities, commodities, and precious metals ahead of delayed US economic data expected to show robust growth in the third quarter.

Japan’s Nikkei jumped 1.8%, extending a rebound from last week as the yen’s sharp decline boosted prospects for export-oriented companies.

The currency has been under pressure after the Bank of Japan raised interest rates to a 30-year high of 0.75% and signalled further tightening, pushing 10-year government bond yields to levels last seen in 1999.

Elsewhere, MSCI’s broad Asia-Pacific index outside Japan gained 0.8%.

South Korea’s market climbed 1.8% on optimism around AI-related earnings, while China’s CSI 300 rose about 0.9%.

Singapore’s benchmark index hit a record high.

European equity futures were more subdued, edging slightly lower.

Despite the positive tone, some strategists urged caution.

Bank of America noted investor sentiment had moved into “extreme bullish territory,” a level that has often preceded short-term pullbacks in global equities.

Gold and Silver extend historic rally

Gold prices climbed to an all-time high above $4,400 an ounce, extending a rally that has made 2025 the metal’s strongest year in more than four decades.

The move followed last week’s quarter-point rate cut by the US Federal Reserve, reinforcing expectations of further easing ahead.

Spot gold was trading near $4,390 an ounce in Asia, while silver surged to around $69 an ounce, also a record.

Platinum and palladium posted sharp gains as well. Analysts pointed to a combination of looser monetary policy expectations, geopolitical tensions, and strong central-bank buying as key drivers.

Gold has risen by roughly two-thirds this year, supported by inflows into bullion-backed exchange-traded funds and steady official-sector demand.

Silver and platinum are also heading for their strongest annual performances since the late 1970s.

China keeps benchmark rates steady

China’s central bank held its key loan prime rates steady for a seventh consecutive meeting, keeping the one-year rate at 3% and the five-year rate at 3.5%.

The decision came despite a run of weaker-than-expected economic data and a prolonged slump in the property sector.

Retail sales and industrial output both missed forecasts in November, while fixed-asset investment contracted more sharply than expected.

Retail sales were up by 1.3% from the previous year in November, slowing from 2.9% growth in October.

Industrial production increased by 4.8% from the previous year, compared to the expectations of a 5% jump.

Economists say further stimulus may be needed, though some caution that monetary easing alone may have a limited impact without broader structural reforms.

Uber and Lyft plan UK robotaxi trials

In the corporate sector, Uber and Lyft said they will partner with Baidu to trial driverless taxis in the UK.

Uber plans to begin pilot operations in London in the first half of 2026 using Baidu’s Apollo Go robotaxis, with commercial services expected before year-end.

Lyft announced similar testing plans, pending regulatory approval.

The moves highlight intensifying global competition in autonomous transport, as ride-hailing companies pursue partnerships rather than developing self-driving technology in-house.

Chinese companies Baidu and Weride, and Alphabet’s Waymo have been leading in the driverless race.

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