Gold prices rose as Democrats took control of Congress in the US midterm elections. The outcome could cap the rise in Treasury yields. It may also limit gains in the US dollar.

The Nikkei fell 4.4% and the KOSPI dropped 3.3%. The declines came amid concerns over tighter US scrutiny of data centres.

The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.85% today, the highest level in 18 years. The central bank said inflation remains its main concern for next year. It did not commit to further tightening.

The dollar slipped to around 156.4 yen in Asia, pressured by Japanese half-year-end flows and remarks from Federal Reserve officials. Japan’s August industrial output unexpectedly fell 1.7% m/m versus expectations for a rise. Retail sales growth slowed to 2.7% y/y versus a 3.3% forecast and fell 1.2% m/m, pointing to softer momentum.

RBA Governor Michele Bullock played down the policy significance of the August CPI report, saying markets should not treat the lagging inflation gauge as an all-or-nothing signal. She said the impact of rate increases is still working through mortgages, household spending and demand, underscoring the lag in monetary policy transmission. Traders are pricing about a 41% chance of another 25 bps hike at the November meeting, leaving markets on the fence.

WTI crude rose $4.93 to $106.31, the highest since May, and has finished higher in 11 of the past 12 sessions. The rally has unfolded amid signs of a tightening supply picture. Saudi Arabia’s spare pipeline is offline and repairs are expected to take three to six weeks or longer, while loadings at a Red Sea port have been suspended. Separately, the U.S. 10-year Treasury yield touched 5.04%, its highest level since 2007.

The Reserve Bank of New Zealand lifted its policy rate by 25 basis points to 2.75%, with Governor Adrian Orr saying settings remain accommodative. Australia’s second-quarter GDP rose 0.4% quarter-on-quarter, above expectations, keeping a September rate hike in focus. In Japan, Bank of Japan Governor Kazuo Ueda signalled more rate increases ahead while warning about cumulative risks, and board member Hajime Takata urged nimble hikes as inflation risks build.

FedEx executives said freight demand has not shown any “demand destruction” in the latest earnings call. The company reported strong revenue growth in the most premium segments of the global economy. They also pointed to inventory rebuilding and early time-critical shipments turning into repeatable revenue streams as signs of steady customer spending. FedEx added that AI and data centers are emerging as a rapidly scaling growth engine, delivering double-digit revenue growth.