Global markets delivered a mixed picture on Wednesday, with Asia-Pacific stocks diverging from Wall Street’s record-setting close, commodities surging to fresh highs, currencies swinging on US dollar weakness, and corporate uncertainty resurfacing at Amazon after a prematurely sent internal email fueled layoff fears.
Asian markets mixed as Wall Street hits record
Asia-Pacific markets traded mixed, breaking ranks with the US after the S&P 500 closed at a record high overnight.
The benchmark rose 0.41% to 6,978.60, supported by gains in Apple and Microsoft.
The Nasdaq Composite climbed 0.91%, while the Dow Jones Industrial Average fell 0.83%, shedding 408.99 points to end at 49,003.4.
In Asia, South Korea’s Kospi and Kosdaq extended their rally, gaining 1.63% and 3.64% respectively to push further into record territory.
Hong Kong’s Hang Seng Index rose 2.37%, led by energy stocks, while China’s CSI 300 gained 0.52%. India’s Nifty 50 added 0.51%.
Japan underperformed, with the Nikkei 225 falling about 0.41% and the Topix down 0.72%, dragged by basic materials stocks.
Australia’s S&P/ASX 200 reversed earlier gains and slipped 0.08%, snapping a three-day winning streak, after headline inflation came in at 3.6% in the final quarter of 2025, the highest level in six quarters.
US stock futures were near flat in Asian hours as investors awaited the Federal Reserve’s policy decision and earnings reports from major technology companies.
US dollar slides as policy signals unsettle FX markets
Currency markets were dominated by sharp moves in the US dollar, which paused on Wednesday after a selloff that pushed it near four-year lows.
The euro climbed above $1.20 for the first time since 2021, while the Australian dollar rose above $0.70 to a three-year high.
The yen touched 152.08 per dollar, its strongest level in almost three months, amid expectations of possible intervention, before the dollar clawed back to around 152.76 yen in Asian trade.
The selloff has been exacerbated by political and policy uncertainty.
President Donald Trump said the dollar’s value is “great” when asked whether the global reserve currency had fallen too much.
Steve Englander, head of global G10 currency research at Standard Chartered, said: “Often officials push back against abrupt currency moves, but when the President expresses indifference or even endorses the move, it emboldens USD sellers to keep pushing.”
The Federal Reserve is widely expected to keep rates steady at 3.5% to 3.75%, with markets focused on guidance and questions around policy independence.
Gold and metals surge to fresh records
Gold prices surged to record highs as the weaker dollar and geopolitical concerns boosted demand.
Spot gold jumped 1.1% to $5,261.4 an ounce at the time of writing.
US gold futures for February delivery surged 3.4% to $5,293.75.
“(Gold’s rise) is due to the very strong indirect correlation with the dollar,” said Kelvin Wong, a senior market analyst at OANDA, adding that recent gains followed remarks implying support for a weaker greenback.
Other precious metals followed suit.
Spot silver rose 1.9% to $115.11 an ounce, platinum gained 2% to $2,692.60, and palladium climbed 1.4% to $1,961.68.
Deutsche Bank said this week that gold could climb to $6,000 per ounce in 2026, citing persistent investment demand.
Amazon employees unsettled by premature email
Corporate news was led by Amazon, where employees were rattled after an internal email referencing “organizational changes” and “impacted colleagues” was sent prematurely and later recalled.
The email, from Colleen Aubrey, senior vice president of applied AI solutions at Amazon Web Services, appeared to confirm impending layoffs.
“Changes like this are hard on everyone,” Aubrey wrote. “These decisions are difficult and are made thoughtfully as we position our organization and AWS for future success.”
The message referenced “Project Dawn,” included a meeting invite that was later canceled, and said affected employees were based in the US, Canada and Costa Rica.
It remains unclear what the project refers to.
The incident comes as Amazon is expected to announce further corporate layoffs following the elimination of 14,000 roles in October, and as it restructures its grocery business.
The company is due to report fourth-quarter earnings on Feb. 5, which may offer more clarity on its strategy and workforce outlook.
The post Morning brief: Asia markets diverge as gold hits records, Dollar slides appeared first on Invezz