Asian equities posted a broadly positive trend on Monday, buoyed by anticipation of the Federal Reserve’s policy‑meeting minutes and hopes for additional U.S. interest‑rate cuts. The tech‑led rally that has been a major driver of market gains is expected to continue, helping to offset concerns about valuations in the sector. The Fed’s decision in December to lower borrowing costs, while signalling a possible pause in future cuts, has further fueled market optimism. Investors will scrutinise the minutes, due on Tuesday, for clues about the central bank’s plans for 2026, as the prospect of rate cuts has been a key catalyst for global market growth this year.
In early trading, Hong Kong, Shanghai, Seoul, Singapore, Taipei and Manila posted gains, whereas Tokyo, Sydney and Wellington slipped. The precious‑metals market retreated, with gold and silver falling from recent record highs. Gold, which had peaked near $4,550 on Friday, was trading around $4,500 on Monday, while silver slipped to $77.50 after reaching a record $80. The surge in precious metals has been linked to their safe‑haven appeal and expectations of further rate cuts. Demand for silver, in particular, has been driven by its use in solar panels, electric vehicles and electronics, creating what Tony Sycamore of IG described as a “generational bubble.”
Oil prices rebounded, recovering from a more than 2 % decline on Friday that was sparked by concerns over a meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky. Trump claimed a deal to end the Ukraine conflict was closer than ever, though no significant breakthrough was reported. As the year draws to a close, markets appear poised to finish on a positive note, with investors eyeing the Fed’s minutes and the possibility of future rate cuts.
Key figures at 02:30 GMT showed the Nikkei 225 down 0.3 % at 50,550.17, the Hang Seng Index up 0.8 % at 26,016.01, and the euro/dollar at $1.1784. West Texas Intermediate crude rose 0.7 % to $57.14 per barrel, while the Dow remained flat at 48,710.97.
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