Trading across Asia presented a fragmented picture on Wednesday, 31 December 2025, as several major financial hubs observed year-end holidays. Markets in Tokyo and Seoul remained shut, while those open saw mixed fortunes amidst thin trading volumes.
Regional Market Movements
In China, the Hang Seng index in Hong Kong dipped 0.5% to 25,715.16 in early trading. Conversely, the mainland's Shanghai Composite edged up less than 0.1% to 3,966.39. Taiwan's Taiex performed strongly, jumping 0.7% to 28,893.59. Australia's S&P/ASX 200 in Sydney saw a minor decline of 0.1%, closing at 8,706.40.
With Tokyo's market closed for the New Year's holidays on Thursday and Friday, and South Korea's exchange also shut on Thursday, activity was significantly subdued. Wall Street was scheduled to remain open on Wednesday but close on Thursday.
Wall Street's Tech Weights and Commodities Rally
In the previous US session, trading volume was light. The S&P 500 fell 0.1% to 6,894.24, marking its third consecutive day of minor losses. Despite this, the benchmark index is poised for an impressive annual gain of over 17%. The Dow Jones Industrial Average dropped 0.2% to 48,367.06, and the Nasdaq composite also fell 0.2% to 23,419.08.
Technology giants, particularly those in artificial intelligence, continued to pressure the market. Nvidia fell 0.4% and Apple declined 0.2%. In contrast, Meta Platforms rose 1.1% as it announced the acquisition of AI startup Manus.
The most dramatic action unfolded in the commodities sector. The price of gold soared 1.4% to $4,386.30 per ounce, while silver prices skyrocketed by 10.9%. This rebound came after a slump on Monday triggered by the Chicago Mercantile Exchange raising margin requirements. Strong demand and supply deficits have driven prices for both precious metals significantly higher throughout 2025.
Copper also surged, rising 4.4% and is up more than 40% for the year, fueled by its critical role in energy infrastructure and AI-driven data centre expansion.
Central Bank Caution and Currency Moves
The economic backdrop remains complex for policymakers. The Federal Reserve cut interest rates three times in late 2025, contributing to a significant yearly drop in Treasury yields. However, inflation persists stubbornly above the Fed's 2% target, even as the jobs market shows signs of cooling.
Minutes from the Fed's December meeting revealed internal divisions, and Wall Street now expects rates to be held steady at the January meeting. In the bond market, the yield on the 10-year Treasury rose slightly to 4.12%.
In currency trading, the US dollar inched up to 156.39 Japanese yen, while the euro held steady at $1.1745.
In energy markets, US crude oil prices dipped 7 cents to $57.88 a barrel, with Brent crude also falling 7 cents to $61.26.
