Asian equities closed modestly higher on Friday amid thin holiday trading, with several major markets shut for Boxing Day, while precious metals extended their strong rally towards record levels.
Silver surged to a fresh milestone, touching $75 an ounce for the first time, while gold hovered close to its own historic highs. The gains were underpinned by heightened geopolitical tensions, particularly ongoing United States military and economic pressure on Venezuela, which has reinforced demand for safe-haven assets.
Regional markets built on positive momentum from Wall Street, where US equities ended the week at record levels. Most global markets were closed on Thursday for Christmas.
By the close of trading on Friday, benchmark indices in Tokyo, Shanghai, Seoul and Taipei finished in positive territory. Markets in Hong Kong, Australia and much of Europe remained closed for the holiday.
Analysts continue to point to the prospect of a so-called “Santa Claus rally” — a seasonal pattern in which equity markets tend to rise during the final five trading days of December and the first two sessions of the new year.
The upbeat sentiment followed gains in New York earlier in the week, where the S&P 500 climbed to an all-time high ahead of the Christmas break. Investor confidence was bolstered by data showing the US economy expanded by a robust 4.3 per cent in the third quarter.
In commodities trading on Friday, silver pushed to a record $75 an ounce, while gold held above $4,500 an ounce. Rising geopolitical risks and expectations that the US Federal Reserve will continue cutting interest rates next year have added to the metals’ appeal.
Concerns have intensified as Washington steps up pressure on Caracas, including the blockade of sanctioned oil vessels travelling to and from Venezuela.
In currency markets, the Japanese yen remained broadly steady on Friday, following a rebound earlier in the week after Japanese authorities signalled readiness to intervene to support the currency.
Meanwhile, Japan’s government approved a record ¥122 trillion ($782 billion) budget on Friday, with increased defence spending amid persistent inflationary pressures.
Market snapshot (around 0700 GMT)
Tokyo – Nikkei 225: up 0.7% at 50,750.39 (close)
Shanghai – Composite: up 0.1% at 3,963.68 (close)
Dollar/yen: up at ¥156.31 from ¥155.98
Euro/dollar: down at $1.1775 from $1.1782
Pound/dollar: down at $1.3485 from $1.3529
Euro/pound: up at 87.31 pence from 87.21 pence
WTI crude: up 0.3% at $58.53 per barrel
Brent crude: up 0.2% at $62.39 per barrel
New York – Dow Jones: up 0.6% at 48,731.16 (close)
London – FTSE 100: down 0.2% at 9,870.68 (close)
