Key Takeaways
- Platinum surged to a record $2,413.62 per ounce after an 8% rally, while Spot Silver also hit a new high, breaking $75 per ounce, driving A-share mining stocks like Zijin Mining (601899.SS) and CMOC Group (603993.SS) to all-time highs with SHFE Silver up 7% and Copper 3%.
- Japan's Finance Minister Katayama affirmed the government's commitment to avoiding reliance on relaxed issuance of Japanese government bonds, noting that debt reliance has decreased to target levels and the upcoming budget is reasonable relative to GDP.
- The Philippine Monetary Authority projected an external gap of $15.5 billion for 2025 and $15.3 billion for 2026, equivalent to 3.2% and 3.0% of national output, respectively, with overall external positions projected at negative $6.2 billion and negative $5.9 billion.
- China marked significant advancements with a new quantum computer achieving a stability milestone, surpassing Google in efficiency, and showcased rising biotech influence through multiple billion-dollar licensing deals.
- Oil prices saw a modest increase amidst ongoing geopolitical tensions, while multiple Ukrainian cities were impacted by Russian drone and shelling attacks.
Precious Metals Soar to Unprecedented Highs
Precious metals markets experienced a significant rally, with platinum hitting a record high of $2,413.62 per ounce following an 8% surge. This marks a substantial gain, with platinum futures having risen over 150% this year, the largest annual advance since at least 1987. Similarly, spot silver broke the $75 per ounce barrier, reaching a new record level. The white metal's rally, extending for a fifth straight session, has been fueled by strong speculative inflows and persistent supply dislocations.
The surge in precious metals had a ripple effect on mining stocks, with Zijin Mining (601899.SS) and CMOC Group (603993.SS) reaching all-time highs in A-share trading. This rally was supported by a 7% increase in SHFE silver and a 3% rise in copper futures. Geopolitical tensions, particularly in Venezuela, have also boosted silver's appeal as a safe-haven asset, alongside expectations of continued U.S. interest rate easing into 2026.
Japan's Finance Minister Outlines Stable Fiscal Path
Japan's Finance Minister Katayama conveyed a message of fiscal prudence, stating the government will avoid depending on relaxed issuance of Japanese government bonds. She highlighted that the government’s reliance on debt has successfully decreased to the target level.
Furthermore, Katayama indicated that the budget for the coming year is considered reasonable when compared with GDP. While the next year’s budget will see growth in absolute terms, its overall size relative to nominal GDP has remained stable over the past three years. The Finance Minister also announced intentions to restructure the Financial Services Agency next summer and plans to invite public feedback on special tax initiatives for the upcoming fiscal year.
Philippine Monetary Authority Projects External Deficits
The Philippine Monetary Authority has released its projections for the country's external position, estimating an external gap of $15.5 billion for 2025, which is equivalent to 3.2% of national output. The overall external position for 2025 is projected at a deficit of $6.2 billion, with a payments deficit equal to 1.3% of GDP.
Looking ahead to 2026, the external account imbalance is seen at $15.3 billion, a deficit projected at 3.0% of economic output. The net payments position in 2026 is estimated at negative $5.9 billion, with a payments gap pegged at 1.2% of GDP. Despite these deficits, international reserve holdings are expected to reach $109 billion by end-2025 and $110 billion by end-2026. Funds sent by overseas workers are forecast to rise 3.0% in both 2025 and 2026.
China Achieves Quantum Computing Milestone and Biotech Surge
China has made significant strides in the technology sector, with its new quantum computer reaching a crucial stability milestone. The advanced machine has demonstrated superior efficiency, reportedly beating Google's quantum computing efforts. This development underscores the ongoing global race in quantum computing and China's growing capabilities in high-tech innovation.
Concurrently, China's biotech industry is showcasing its rising global clout through a flurry of billion-dollar licensing deals. These agreements highlight the increasing recognition and investment in Chinese biopharmaceutical innovations on the international stage.
Oil Prices Edge Up Amid Geopolitical Concerns
Oil prices experienced a modest increase, driven by persistent geopolitical tensions. The market remains sensitive to global political developments, which can influence supply expectations and investor sentiment. In Eastern Europe, multiple Ukrainian cities were reportedly hit by Russian drones and shelling, resulting in lives lost, further contributing to the backdrop of global instability.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.