(Dec 26): Asian stocks are set for a muted open with several regional markets still shut for holidays. Sentiment may remain generally positive after US shares extended this year’s gain on Wednesday.
Equity futures in Japan pointed to a flat open, while financial markets in Australia and Hong Kong remain shut. Most markets in Asia, US and Europe were closed Thursday for Christmas Day.
Equity bulls are pinning their optimism on what’s known as the “Santa Claus Rally” to push stocks to fresh records even as exuberance over artificial intelligence and the Federal Reserve’s interest-rate path are being questioned. The rally is traditionally seen as taking place on the final five trading sessions of a year and the first two of the new one.
“As equity markets enter the fourth year of a bull market, our underlying market call remains constructive,” Scott Chronert, head of US equities strategy at Citigroup Inc. wrote in note this week. “The current fundamental backdrop clearly has the opportunity for an ongoing AI-related tailwind to large cap growth.”
The S&P 500 Index gained for a fifth day Wednesday in a shortened session ahead of the Christmas holiday. The VIX index of the S&P 500’s expected volatility fell to the lowest this year. The Treasury 10-year yield dropped three basis points to 4.13%.
The yen was little changed Friday ahead of national jobs data and the Tokyo inflation rate that may give a further clue on the timing of any more Bank of Japan rate hikes. The currency tumbled last Friday when the BOJ raised rates but sounded cautious about future tightening.
See also: Stocks hit highs as ‘Santa Rally’ countdown begins
China’s yuan strengthened past the psychological milestone of seven per dollar in offshore trading Thursday for the first time since September 2024, on speculation the central bank will allow gradual currency appreciation to boost market confidence. The move came after the People’s Bank of China strengthened its daily reference rate to the the strongest level since September 2024.
In commodities, gold steadied Wednesday after a rally that took the precious metal to an all-time high above US$4,500 an ounce.
Some of the main moves in markets:
See also: Asian stocks advance on tech, set for 'Santa Claus rally'
Currencies
- The euro was unchanged at US$1.1784
- The Japanese yen was little changed at 155.94 per dollar
- The offshore yuan was little changed at 6.9998 per dollar
Cryptocurrencies
- Bitcoin was little changed at US$87,793.1
- Ether fell 0.2% to US$2,938.24
Uploaded by Jason Ng
