BY EMMANUEL OGBONNA
Asian stock markets were mostly higher on Tuesday, taking cues from gains on Wall Street as investors moved into what is expected to be a relatively quiet, holiday-shortened trading week. With major U.S. markets set to close early midweek and shut entirely for Christmas, trading volumes were subdued and price moves modest across much of the region.
U.S. stock futures were little changed in early trading, reflecting a cautious mood as investors awaited a handful of key economic reports that could offer fresh insight into the strength and direction of the American economy heading into the new year.
In commodities, precious metals continued their strong run. Gold touched new record levels, rising 1.1% to $4,519.50 an ounce in early Asian trading, extending a rally that has been fueled by persistent inflation concerns, geopolitical uncertainty and expectations that U.S. interest rates are nearing their peak. Silver also advanced, gaining 1.5% as investors sought broader exposure to safe-haven assets.
In Japan, the Nikkei 225 was little changed at 50,412.87. Currency movements drew attention after Japanese officials reiterated warnings that they are prepared to step into markets if the yen weakens sharply. The U.S. dollar slipped against the yen to 156.01, down from 157.04 late Monday. The euro strengthened slightly, rising to $1.1782 from $1.1762.
Chinese markets were mixed. Hong Kong’s Hang Seng Index reversed early gains and slipped 0.1% to 25,774.14, while the Shanghai Composite Index edged up 0.1% to 3,919.98, supported by selective buying in financial and industrial stocks. In South Korea, the Kospi rose 0.3% to 4,117.32, and Australia’s S&P/ASX 200 jumped 1.1% to 8,795.70, buoyed by strength in mining and energy shares. Taiwan’s Taiex advanced 0.6%, while India’s Sensex hovered near flat as investors awaited clearer signals on global growth and domestic earnings.
Attention later in the week will turn to the U.S. economic calendar, even as trading days are reduced by the Christmas holiday. Markets in the United States will close early on Wednesday for Christmas Eve and remain closed on Thursday. Despite the shortened schedule, several reports are expected to shape sentiment.
The government is set to release the first of three estimates on third-quarter gross domestic product, offering a snapshot of how the broader economy performed over the summer. Weekly data on applications for jobless benefits will provide a timely indicator of labor market conditions, while the Conference Board’s December consumer confidence survey will shed light on household sentiment as inflation pressures linger.
Wall Street began the week on a positive note. On Monday, the S&P 500 climbed 0.6%, the Dow Jones Industrial Average rose 0.5%, and the Nasdaq composite added 0.5%. Smaller-company stocks outperformed, with the Russell 2000 jumping 1.2%, signaling renewed investor appetite for risk as December trading nears its end.
The gains have pushed major U.S. indexes further into positive territory for the month after a choppy stretch of trading. Technology stocks, particularly those tied to artificial intelligence, have continued to drive much of the market’s volatility. Analysts say the performance of AI-related shares could play a decisive role in determining whether markets finish December higher or give back recent gains.
Several individual stocks were in focus. Uber shares rose 2.5% and Lyft gained 2.7% after the companies announced plans to introduce robotaxi services in London next year, highlighting growing confidence in autonomous driving technology.
In the media sector, Paramount Skydance surged 4.3% after increasing its hostile takeover bid for Warner Bros. Discovery. The revised offer included an irrevocable personal guarantee from Oracle founder Larry Ellison, who is backing the deal with billions of dollars as the bidding battle with Netflix intensifies. Warner Bros. Discovery shares climbed 3.5%, while Netflix fell 1.2%.
In energy markets, Dominion Energy dropped 3.7% after the U.S. administration said it was pausing leases for five large offshore wind projects, including Dominion’s Coastal Virginia Offshore Wind development. Oil prices were largely steady after surging more than 2% on Monday, when the U.S. Coast Guard said it was pursuing another sanctioned oil tanker in the Caribbean. U.S. benchmark crude held at $58.01 per barrel, while Brent crude, the international standard, edged up 7 cents to $62.14 per barrel.
Looking ahead, investors remain cautious about the broader economic outlook. Recent data show inflation in the United States remains elevated, while consumer confidence has softened over the past year. The labor market has shown signs of cooling, and retail sales have weakened, raising concerns that higher prices and tighter financial conditions are weighing on household spending.
The ongoing U.S. trade war continues to cloud the outlook for both consumers and businesses already under pressure from rising costs. The combination of stubborn inflation and a slowing jobs market has complicated the Federal Reserve’s policy path. Even so, markets are largely betting that the central bank will hold interest rates steady at its January meeting, following three consecutive rate cuts, despite inflation remaining above the Fed’s 2% target.
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