Key Takeaways
- Spot silver surged past the $40 per ounce mark, reaching levels not seen since September 2011, driven by inflation concerns.
- Asian technology stocks experienced a significant downturn, with Japan's Nikkei 225 (N225) falling 1% and SoftBank Group (9984.T) shares dropping as much as 6.75%, mirroring a selloff in U.S. tech.
- China's manufacturing sector showed signs of recovery, with the RatingDog PMI rising to 50.5 in August, indicating the quickest improvement in five months.
- Xiaomi EV (1810.HK) reported strong August deliveries exceeding 30,000 units, highlighting robust demand and production expansion plans.
- Geopolitical activity intensified as Indian Prime Minister Narendra Modi met with Russian President Vladimir Putin and Chinese President Xi Jinping at the SCO summit in Tianjin, while North Korea's Kim Jong Un inspected a missile factory before a trip to China.
Global financial markets are reacting to a mix of surging commodity prices, a tech sector slump in Asia, and significant geopolitical developments. Precious metals are gaining traction, while major Asian indices are under pressure.
Precious Metals Rally Amid Inflationary Pressures
Spot silver has broken the $40 per ounce threshold, marking its highest price point since September 2011. The metal's price reached as high as $40.30 per ounce, reflecting growing investor concerns over inflation. This rally in silver was accompanied by a strong performance in gold futures, which rose by $43 to $3,517, nearing its all-time high of $3,534.1. The upward movement in precious metals is largely attributed to the latest PCE inflation report, which showed the core year-over-year PCE rising to 2.9%.
Asian Tech Sector Faces Headwinds
Japan's stock market experienced a notable decline, with the Nikkei 225 Index (N225) falling 1% to below 42,300. This downturn extended losses from the previous session and mirrored a broader selloff on Wall Street, influenced by fresh U.S. inflation data and a U.S. federal appeals court ruling on tariffs. Technology shares led the decline, with companies like Advantest (-6.3%), Disco (-6.8%), and Lasertec (-3%) seeing steep drops.
SoftBank Group (9984.T) shares were particularly affected, dropping as much as 6.75% and extending previous losses. This decline in the Japanese tech investment giant was part of a broader trend across Asian tech stocks, which tracked losses experienced by their U.S. counterparts. The market sentiment was also impacted by SoftBank's recent announcement of a $2 billion investment in Intel.
China's Manufacturing Rebounds, EV Deliveries Soar
In positive economic news for China, the RatingDog China General Manufacturing PMI for August rose to 50.5, surpassing analyst estimates of 49.8 and July's figure of 49.5. This indicates that manufacturing sector conditions improved at the quickest pace in five months, returning to growth territory. Manufacturing output resumed growth, and total new business expanded at its fastest rate since March. However, new export orders continued to contract for the fifth consecutive month, and average input costs saw their steepest rise in nine months.
Meanwhile, Xiaomi EV (1810.HK) announced strong performance in its electric vehicle division, with deliveries topping 30,000 units in August 2025. This figure represents a significant increase, with Deutsche Bank forecasting August deliveries to reach 34,000 units. The company's SU7 and newly launched YU7 models are experiencing high demand, leading to extended wait times of over 30 weeks for the SU7 and up to 15 months for the YU7. Xiaomi is actively expanding its production capacity with a second plant scheduled to begin full-scale operations and a third factory in planning, aiming to meet surging consumer interest. Bloomberg Intelligence projects that Xiaomi is on track to surpass Tesla (TSLA) in China's auto sales by 2026.
Indonesian Markets Under Pressure
Indonesia's financial markets faced headwinds, with the Indonesian rupiah (IDR) gaining slightly to 16,450 per dollar. This modest gain follows periods of significant depreciation earlier in the year, with the rupiah having touched as low as 16,850 per dollar in April. The country's stock market, the Jakarta Composite Index (JKSE), fell by over 3%. This decline is part of a broader trend of investor apprehension, with the market having experienced more severe drops of over 7% and 9% in March and April, respectively, which triggered trading halts. Concerns over economic policy under President Prabowo Subianto, new U.S. tariff policies, and the introduction of a 12% value-added tax are contributing to investor uncertainty and foreign capital outflows.
Geopolitical Engagements at the SCO Summit
Geopolitical developments took center stage at the Shanghai Cooperation Organization (SCO) summit in Tianjin, China. Indian Prime Minister Narendra Modi participated in the plenary session and held a bilateral meeting with Russian President Vladimir Putin. This meeting is particularly significant given ongoing U.S. pressure on India to reduce its purchases of Russian crude oil. Modi also met with Chinese President Xi Jinping on the sidelines, where both leaders reaffirmed their commitment to viewing India and China as "development partners, not rivals," and discussed ways to expand bilateral trade.
Separately, North Korean leader Kim Jong Un toured a new missile-producing factory before his planned trip to China to attend a military parade. During his inspection, Kim approved new missile production and defense expenditure plans, emphasizing the country's efforts to bolster its combat readiness and project deterrent power. North Korea has reportedly been providing military support, including conventional weapons and troops, to Russia for the conflict in Ukraine.
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.