Asia-Pacific stock markets traded mostly flat Wednesday, breaking ranks from Wall Street losses after the World Bank raised the region’s growth forecast. Hong Kong’s Hang Seng index slid 1.01%, while Japan’s Nikkei 225 was little changed and the Topix added 0.66%. The Japanese yen weakened 0.38% to 152.48 against the greenback. Australia’s ASX/S&P 200 fell 0.3%, while mainland China and South Korean markets remained closed for holidays. In a notable policy shift, the Reserve Bank of New Zealand trimmed its benchmark interest rate by 50 basis points to 2.5%.
The S&P 500 struggled Tuesday, bogged down by a drop in Oracle shares amid worries about AI profitability. Wall Street also monitored the U.S. government shutdown, now in its second week. The broad market index pulled back 0.38% to 6,714.59, snapping a seven-day winning streak, while the Nasdaq Composite fell 0.67%. The Dow Jones Industrial Average dropped 91.99 points to end at 46,602.98. Oracle led the tech decline following reports of thin margins in its cloud business and losses on deals involving the rental of Nvidia chips.
Gold prices hit a historic $4,000 milestone Tuesday as investors sought a safe haven amid geopolitical volatility and economic uncertainty. Gold futures closed at a record $4,004.40 per ounce after reaching an intraday high of $4,014.60. Prices have risen approximately 50% this year, fueled by a weakening U.S. dollar and trade tensions involving the Trump administration. Central banks and retail investors are buying gold at a rapid pace as countries seek to diversify away from U.S. Treasuries following major sanctions on Russia.
Oil prices steadied Tuesday as investors weighed a smaller-than-expected OPEC+ output increase for November against signs of a potential supply glut. Brent crude futures closed down slightly at $65.45 a barrel, while U.S. West Texas Intermediate settled at $61.73. Global inventories are expected to rise through next year, driven by non-OPEC+ output growth, potentially putting downward pressure on prices. Meanwhile, China continues to rapidly build oil reserve sites to boost national stockpiles.
The World Bank raised its 2025 growth forecast for China to 4.8%, up from a 4.0% prediction in April. The new forecast aligns more closely with China’s official target of around 5% GDP growth. While the economy has benefited from government support, the World Bank noted that this could fade next year. Trade tensions between China and the U.S. remains a key variable; although a trade truce is currently in effect, tariffs had temporarily surged to over 100% earlier this year.
U.S. lawmakers are urging broader bans on selling chipmaking equipment to China after an investigation revealed Chinese firms purchased $38 billion of gear last year. The House Select Committee on China reported that inconsistencies in U.S., Japanese, and Dutch rules allowed non-U.S. manufacturers to sell sophisticated gear to Chinese firms that U.S. companies could not. The committee called for a unified ban by the U.S. and its allies to prevent China from advancing its domestic semiconductor capabilities.
President Donald Trump suggested Tuesday that some federal workers furloughed during the government shutdown may not receive back pay. His remarks followed the circulation of a draft White House memo arguing that unpaid leave does not guarantee retroactive compensation. This position appears to clash with a 2019 federal law signed by Trump that mandates payment for federal employees during lapses in appropriations. When asked for clarification, Trump stated that back pay "depends on who we’re talking about."
Senator Susan Collins is reportedly seeking an "off-ramp" for the ongoing government shutdown, though she is not yet ready to meet Democrats' primary demand to codify Affordable Care Act (ACA) subsidies. Collins shared a draft proposal selectively, insisting that funding to reopen the government should pass before negotiating ACA extensions. Most Democratic senators remain firm, refusing to vote for funding legislation unless it includes the subsidies set to expire at the end of the year.
Staffing shortages at air traffic control facilities delayed flights at numerous U.S. airports for a second day as the government shutdown reached its seventh day. The FAA reported significant delays at Nashville and Newark, with ground stops and arrival restrictions implemented. Memphis Center was forced to take over operations for Nashville due to local shortages. Chicago O’Hare also saw average delays exceeding 40 minutes as the shutdown began to strain essential aviation services.
Intel plans to release technical details for its "Panther Lake" laptop chips this Thursday to reassure investors about its next-generation manufacturing process, 18A. These high-end mobile processors are the first high-volume products to utilize the 18A tech, which Intel has invested billions to develop. The company hopes Panther Lake will help reverse market share losses to Advanced Micro Devices (AMD) by proving Intel has regained its manufacturing edge.
Oracle shares slipped 3% Tuesday following reports that its AI chip rental business is operating on thin margins. Internal documents reportedly show gross margins of just 14% on $900 million in Nvidia-powered server revenue—far below the company's overall gross margin of roughly 70%. The report suggests that while Oracle has become a vital AI cloud partner for firms like OpenAI, high procurement costs for Nvidia hardware and aggressive rental pricing pose significant profitability challenges.
Tesla debuted more affordable versions of its popular EVs on Tuesday, with the Model Y standard priced just below $40,000 and the Model 3 starting at roughly $37,000. The reveal followed a teaser campaign and coincided with the release of a new version of Full Self-Driving (Supervised). The new Model Y features an estimated 321-mile range. Despite the product news, Tesla stock closed 4.45% lower as investors reacted to broader market pressure and the reveal event.
Shares of minerals explorer Trilogy Metals surged over 200% Tuesday after the White House announced it would take a 10% stake in the company. The $35.6 million investment is part of a strategic push to secure domestic supplies of copper and critical minerals in Alaska's Ambler mining district. Western officials have identified China’s dominance in mineral supply chains as a strategic challenge, making the development of rich polymetallic deposits in the U.S. a priority for the administration.
AI startup Anthropic announced plans to open its first office in India in 2026 to tap into the country's surging demand for AI tools. India has become the second-largest consumer market for Anthropic's chatbot, Claude, which is particularly popular for its coding capabilities. The expansion reflects a growing trend of global AI players targeting the Indian market, which is supported by rising enterprise tech spending and a deep pool of skilled talent.