Asian stocks edged up in thin holiday trade on Friday after the S&P 500 ended higher for a fifth day in a shortened session on Wednesday ahead of the Christmas and Boxing holidays.
Regional trading volumes remain thin, with several markets shut for holidays.
Precious metals like gold and silver hovered near record levels, driven by U.S. dollar weakness, escalating geopolitical tensions and expectations for two Federal Reserve rate cuts by the end of 2026.
Oil edged up slightly as investors weighed Venezuela supply risks. The White House has reportedly ordered the U.S. military to focus almost exclusively on enforcing a "quarantine" of Venezuelan oil for at least the next two months.
Elsewhere, Ukraine has widened the scope of its attacks on Russian energy assets, targeting not only crude refineries but also pipelines and other facilities.
China's Shanghai Composite index was up 0.1 percent as the yuan strengthened past the psychological milestone of 7 per dollar in offshore trading for the first time since September 2024 on bets China's central bank would allow gradual appreciation of the currency to boost market confidence.
The move came after the People's Bank of China strengthened its daily reference rate to the strongest level since September 2024.
Japan's Nikkei average surged nearly 1 percent and was set for a second weekly gain after Prime Minister Sanae Takaichi's cabinet approved a record $785 billion budget for the next fiscal year and vowed to keep debt in check.
South Korea's Kospi climbed 0.7 percent led by a surge in technology stocks. Tech giant Samsung Electronics soared 4.7 percent, its chipmaking rival SK Hynix rallied 2.2 percent and artificial intelligence investment firm SK Square climbed 5 percent.
On Wall Street, stocks extended their winning streak to a fifth straight session on Wednesday as trading closed early on Christmas Eve.
Underlying sentiment was underpinned after data showed U.S. GDP rose at an annualized rate of 4.3 percent over the third quarter, far higher than the consensus estimate of 3.2 percent.
Unemployment claims fell for the second week in a row even as consumer confidence continued to falter.
The Dow rose 0.6 percent and the S&P 500 added 0.3 percent to reach new record closing highs while the tech-heavy Nasdaq Composite edged up by 0.2 percent.
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Market Analysis
December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.