[ET Net News Agency, 19 December 2025] Overnight, all three major US indices closed higher amid volatile trading, and Asia-Pacific markets largely followed suit this morning. The Bank of Japan raised interest rates by 25 basis points as widely expected. On the eve of the hike, the Nikkei ended its morning session up 1.16%, with gains extending to 1.41% after the announcement. The Hang Seng Index opened more than 100 points higher, saw some early swings, and closed the morning session up 165 points or 0.6% at 25,663, with main board turnover exceeding HKD 97.5 billion. The Hang Seng China Enterprises Index rose 44 points, or 0.5%, to 8,885, while the Hang Seng Tech Index added 61 points, or 1.1%, to 5,480.
"Jaseper Tsang: HSI likely to remain range-bound between 25,000 and 25,600"
US November CPI rose 2.7% year-on-year, below the expected 3.1% and marking the slowest increase in four years. The cooling inflation boosted market sentiment and lifted Hong Kong stocks, with the HSI immediately reclaiming the 10-day moving average (around 25,574). Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators Limited, told ET Net News Agency that while softer US inflation gives the Fed some leeway to cut rates, interest rate futures show little change in the odds of a rate cut in Q1. Most investors believe the Fed will need more labour market data, as the deterioration seen in the November jobs report alone is not sufficient to judge the true state of the market.
The HSI has now advanced for three consecutive days, regaining the 25,500 level. However, Tsang notes that, with institutional investors largely sidelined at year-end and turnover shrinking, the index remains stuck in a range. Support is seen at 25,000, with resistance at the 50-day moving average (around 25,600). A breakout to 26,200 is not ruled out if US markets continue to rebound.
"Silver and platinum outperform gold, but beware of "grey rhino" risks"
Gold surged overnight on expectations of continued Fed easing and heightened geopolitical tensions. New York gold futures briefly broke above the USD 4,400 per ounce psychological barrier, reaching an all-time high of USD 4,409.50, while spot gold came close to its historic high of USD 4,381.60. However, profit-taking soon set in, pulling futures back below the USD 4,400 mark.
Tsang commented that global central banks, family offices, and institutional investors are all increasing gold allocations to hedge against dollar weakness. With confidence in US Treasuries also waning, he expects gold demand to remain robust. Optimistically, gold could challenge USD 4,500 next year, but prices are likely to remain volatile in the near term, with no guarantee of a sustained breakout.
He also cautioned that silver and platinum have recently outperformed gold, with gains over the past month even surpassing those of gold itself, largely fuelled by hot money and speculative flows amid ample liquidity. Should major economies post weaker-than-expected data, a "grey rhino" event could trigger a chain reaction, forcing funds to unwind positions and causing turbulence in precious metals markets.
Although silver and platinum have outpaced gold, Tsang does not recommend buying them at current levels, noting their detachment from economic fundamentals.
For investors seeking to capture gold's upside, Tsang favours gold ETFs over gold mining stocks for direct exposure to price movements. Key support for gold is seen at the USD 4,000 level. For those interested in miners, he suggests focusing on companies with high operating efficiency, significant gold reserves, or a pure-play gold business, such as Zhaojin Mining (01818), with a recommended entry at HKD 28 and a target price of HKD 35.
"Jaseper Tsang: HSI likely to remain range-bound between 25,000 and 25,600"
US November CPI rose 2.7% year-on-year, below the expected 3.1% and marking the slowest increase in four years. The cooling inflation boosted market sentiment and lifted Hong Kong stocks, with the HSI immediately reclaiming the 10-day moving average (around 25,574). Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators Limited, told ET Net News Agency that while softer US inflation gives the Fed some leeway to cut rates, interest rate futures show little change in the odds of a rate cut in Q1. Most investors believe the Fed will need more labour market data, as the deterioration seen in the November jobs report alone is not sufficient to judge the true state of the market.
The HSI has now advanced for three consecutive days, regaining the 25,500 level. However, Tsang notes that, with institutional investors largely sidelined at year-end and turnover shrinking, the index remains stuck in a range. Support is seen at 25,000, with resistance at the 50-day moving average (around 25,600). A breakout to 26,200 is not ruled out if US markets continue to rebound.
"Silver and platinum outperform gold, but beware of "grey rhino" risks"
Gold surged overnight on expectations of continued Fed easing and heightened geopolitical tensions. New York gold futures briefly broke above the USD 4,400 per ounce psychological barrier, reaching an all-time high of USD 4,409.50, while spot gold came close to its historic high of USD 4,381.60. However, profit-taking soon set in, pulling futures back below the USD 4,400 mark.
Tsang commented that global central banks, family offices, and institutional investors are all increasing gold allocations to hedge against dollar weakness. With confidence in US Treasuries also waning, he expects gold demand to remain robust. Optimistically, gold could challenge USD 4,500 next year, but prices are likely to remain volatile in the near term, with no guarantee of a sustained breakout.
He also cautioned that silver and platinum have recently outperformed gold, with gains over the past month even surpassing those of gold itself, largely fuelled by hot money and speculative flows amid ample liquidity. Should major economies post weaker-than-expected data, a "grey rhino" event could trigger a chain reaction, forcing funds to unwind positions and causing turbulence in precious metals markets.
Although silver and platinum have outpaced gold, Tsang does not recommend buying them at current levels, noting their detachment from economic fundamentals.
For investors seeking to capture gold's upside, Tsang favours gold ETFs over gold mining stocks for direct exposure to price movements. Key support for gold is seen at the USD 4,000 level. For those interested in miners, he suggests focusing on companies with high operating efficiency, significant gold reserves, or a pure-play gold business, such as Zhaojin Mining (01818), with a recommended entry at HKD 28 and a target price of HKD 35.