Asian Stocks Soar Amid Election Buzz and Metal Highs

Asian stocks surged to unprecedented levels on Wednesday, driven primarily by gains in Japanese shares as investors braced for a possible election in Japan. The election could usher in more economic stimulus, amid concerns over central bank autonomy and benign U.S. inflation data impacting currency values.

Meanwhile, geopolitical tensions have fueled a surge in commodity prices, with silver surpassing $90 per ounce for the first time, marking a 27% increase in early 2025 trading. Gold also reached a record high, reflecting investor interest amid rising geopolitical instabilities.

The Japanese yen hit a new low since mid-2024, raising the specter of market intervention as Japan's political landscape remained uncertain. Additionally, China stocks dipped after tightening margin requirements, impacting an otherwise robust equity market, and the U.S. dollar steadied against global currencies amid cautious expectations of federal rate adjustments.