Asia-Pacific markets closed mostly lower on Wednesday, diverging from Wall Street’s advance, as Japan’s plan to issue ¥29.6 trillion ($190 billion) in new government bonds for its 2026 budget pushed long-term yields to record highs. The move heightened concerns over fiscal sustainability and borrowing costs, dampening regional sentiment.

Japan’s Nikkei 225 slipped 0.14%, while the Topix fell 0.46%. Yields on 30-year Japanese government bonds rose over 2 basis points to a historic 3.454%. South Korea’s Kospi declined 0.21%, and Australia’s S&P/ASX 200 snapped a four-day winning streak with a 0.38% drop. Hong Kong’s Hang Seng and mainland China’s CSI 300 bucked the trend with modest gains.

Precious Metals Extend Record Rally

Spot gold breached $4,500 per ounce for the first time, extending its year-to-date surge beyond 70%, while platinum also scaled new highs above $2,300. Mizuho’s Vishnu Varathan attributed the rally to “the allure as hedges of USD debasement,” noting a nearly 10% decline in the U.S. dollar index this year. Silver approached $72, supported by industrial demand and investment inflows.

Corporate Moves and Currency Shifts

South Korean battery materials firm EnChem jumped over 10% on reports of a won 1.5 trillion ($1.03 billion) supply deal with China’s CATL. The South Korean won strengthened over 1% against the dollar, aided by strategic hedging activities by the national pension fund. In Japan, Sapporo Holdings rose 3.7% after agreeing to sell its real estate unit to KKR and PAG for about $3 billion.

U.S. futures were flat in early Asian hours after the S&P 500 closed at a record high, powered by continued strength in AI-related stocks. As regional markets navigate fiscal concerns and currency volatility, the relentless climb in precious metals underscores a deepening safe-haven bid amid geopolitical and monetary uncertainty.