Asian financial markets witnessed modest gains on Friday, December 27, as trading activity remained subdued with several major global exchanges shut for the Boxing Day holiday. The positive momentum followed Wall Street's record-setting performance earlier in the week, providing a boost to regional investor sentiment during a traditionally quiet period.
Regional Markets Post Steady Gains
Key exchanges that were open across Asia reported upward movement. In Tokyo, Japan's Topix index climbed 0.5%, reaching a fresh all-time high. Meanwhile, South Korea's benchmark KOSPI index rose by 0.6%. This increase has cemented its position as the world's best-performing major stock market in 2024, with an annual gain of a staggering 72%.
In China, the blue-chip CSI 300 index was up 0.27%. According to Reuters data, the index is on track for an 18% annual gain in 2025, which would mark its strongest yearly performance since 2020. The collective strength lifted the MSCI's broad Asia-Pacific share index to its highest level since November 14. This key regional barometer was last up 0.4% and has gained 25% over the course of the year.
Thin Liquidity and Year-End Rally Hopes
Trading volumes were light as markets in Australia, Hong Kong, and much of Europe remained closed for the holiday. Despite the thin liquidity, investors displayed a clear appetite for risk, continuing to push for a year-end rally. Analysts cited by AFP pointed to expectations of a classic "Santa Claus rally"—a seasonal trend where stock prices tend to rise in the final five trading days of December and the first two of January.
Sentiment was further bolstered by the record-breaking run on Wall Street. The S&P 500 index hit an all-time high before the Christmas holiday, following data showing the U.S. economy expanded at a robust 4.3% annual rate in the third quarter.
Precious Metals Shine Bright
The commodities market, particularly precious metals, remained a focal point of strength. Silver prices surged past the $75 per ounce mark for the first time ever, reaching a peak of $75.1515 on Friday. Spot gold also continued its record-breaking run, touching a fresh high of $4,531.04 per ounce, solidifying its position above the $4,500 threshold.
Market analysts attribute the sustained rally in precious metals to a combination of rising geopolitical tensions, including those between the US and Venezuela, and growing expectations that the U.S. Federal Reserve will continue to cut interest rates in the coming year. These factors have collectively supported safe-haven demand and price levels.
