Asian stocks edged higher on Tuesday, buoyed by a surge in U.S. technology shares that lifted global markets into a modest winning streak.
Global Market Snapshot
U.S. futures were almost flat, but the early gains on Wall Street set the tone for a relatively calm holiday week. The Nikkei 225 in Tokyo finished unchanged at 50,412.87, while the dollar slipped to 156.01 yen from 157.04 on Monday. The euro also nudged higher, trading at $1.1782 versus $1.1762.
In Asia, Hong Kong’s Hang Seng gave back early gains, falling 0.1% to 25,774.14. Shanghai’s Composite index slipped 0.1% to 3,919.98, whereas South Korea’s Kospi added 0.3% to 4,117.32. Australia’s S&P/ASX 200 jumped 1.1% to 8,795.70. Taiwan’s Taiex rose 0.6% and India’s Sensex was essentially flat.
Commodity and Currency Moves
Gold hit a new record, climbing 1.1% to $4,519.50, while silver advanced 1.5%. Oil prices held steady after a 2% jump on Monday; U.S. benchmark crude was unchanged at $58.01 per barrel and Brent crude gained 7 cents to $62.14.
U.S. Market Highlights
The U.S. market closed early on Wednesday for Christmas Eve and remained shut on Thursday for Christmas. Several key reports were slated for the short week, including the first of three GDP estimates for the third quarter on Tuesday and weekly jobless claims on Wednesday. The Conference Board’s December consumer confidence survey was also due on Tuesday.
On Monday, the S&P 500 climbed 0.6%, the Dow Jones Industrial Average rose 0.5%, and the Nasdaq composite gained 0.5%. The Russell 2000 outperformed the big-caps, posting a 1.2% gain. Technology companies, especially those focused on artificial intelligence, led the rally, suggesting that AI-related stocks will determine whether December ends in the green.
Corporate Movements
Ride-hailing giants posted sharp gains: Uber jumped 2.5% and Lyft 2.7% after announcing plans to launch robotaxi services in London next year.
Paramount Skydance surged 4.3% after sweetening its hostile takeover bid for Warner Bros. Discovery with an irrevocable personal guarantee from Larry Ellison, the founder of Oracle and father of Paramount CEO David Ellison. Ellison is pledging billions to support the bid, intensifying the bidding war against Netflix.
Warner Bros. Discovery rose 3.5% while Netflix fell 1.2%. Dominion Energy dropped 3.7% after the Trump administration paused leases for five large-scale offshore wind projects, including Dominion’s Coastal Virginia Offshore Wind project.
Economic Context
Recent data show that U.S. inflation remains elevated and consumer confidence has weakened over the past year. The job market is slowing and retail sales have weakened. The ongoing trade war continues to pressure consumers and businesses already grappling with higher prices. The mix of stubborn inflation and a weaker job market has placed the Federal Reserve in a difficult position.
Despite these challenges, Wall Street largely bets that the Fed will keep rates steady at its January meeting. The Fed has cut its benchmark rate at its last three meetings, even though inflation has stayed above the 2% target.
Key Takeaways
- Asian shares gained modestly as U.S. tech stocks pushed global markets higher.
- Gold reached a record $4,519.50 and silver rose 1.5%.
- Paramount Skydance added a personal guarantee from Larry Ellison to its bid for Warner Bros. Discovery.
The holiday trading week will be punctuated by several economic releases that could clarify the direction of the U.S. economy. Investors will watch closely to see if the Fed’s policy stance will shift amid persistent inflation and a cooling labor market.
Closing Thoughts
With markets poised for a short trading week, the interplay between corporate earnings, commodity prices, and macroeconomic data will shape investor sentiment. The performance of AI-driven technology stocks remains a key barometer for December’s end-of-month trend, while the Fed’s forthcoming decision will likely influence the broader market trajectory into the new year.
