Asian stocks subdued as gold prices near record highs

Asian stocks were subdued on Wednesday as economic concerns and geopolitical issues affected investor confidence. Gold prices remained close to record highs, reflecting a cautious market sentiment. The Japanese yen stabilized after the Bank of Japan (BOJ) maintained its short-term interest rate at 0.5%, as expected. The yen traded at 149.33 per dollar. Earlier in the day, there was some volatility, but it ended with little change. Analysts believe the BOJ might raise rates again soon, with some predicting a possible increase by June, depending on economic indicators. In Japan, the Nikkei index rose by 0.69%, remaining near previous levels. Meanwhile, the euro stayed strong after Germany's parliament approved increased spending plans, boosting Chancellor-in-waiting Friedrich Merz. Geopolitical tensions heightened following Israeli airstrikes in Gaza, resulting in over 400 deaths, and ongoing uncertainty around the Russia-Ukraine conflict. Investors are wary as ceasefire talks between Russia and Ukraine appear stalled, adding to the fragile market atmosphere. The MSCI index tracking Asia-Pacific shares outside Japan fell by 0.11%. Indonesian stocks saw mixed trading after experiencing a significant drop the previous day due to concerns about government fiscal policies. In the U.S., stock markets declined as investors awaited the Federal Reserve’s monetary policy decision. The dollar index remained stable at 103.34, near a five-month low. Investors expect the Fed to keep interest rates steady but are looking for clarity on future economic projections. In the commodities market, Brent crude prices dropped slightly, while gold fell to $3,029 per ounce, just below its recent record high, as investors sought safe assets amid global uncertainties.