Tech Strength Lifts Global Markets While Commodities Shine in Year-End Rally

Holiday trading patterns emerged across Asian markets on Friday as investors cheered a stronger-than-expected U.S. economic backdrop. The S&P 500 extended its winning streak for a fifth consecutive session before markets closed early on Christmas Eve, setting the stage for regional outperformance. With trading volumes thin across Australia, New Zealand, Hong Kong and much of Europe due to holiday closures, individual stock moves became more pronounced and directional flows harder to track.

Precious Metals Surge on Currency Weakness and Geopolitical Tensions

The real story of the session lay in precious metals markets, where both gold and silver posted fresh records. Gold broke through $4,531 per ounce—hitting an all-time high—while silver vaulted past the $75 per ounce threshold for the first time ever. Driving this dual advance was a combination of U.S. dollar weakness, escalating U.S.-Venezuela tensions, and market pricing in two Federal Reserve rate cuts before 2026 year-end. The dollar’s retreat opened the door for commodities priced in greenbacks, while geopolitical friction over Venezuelan oil supply added safe-haven bidding underneath the precious metals complex.

Energy markets mirrored commodity strength as crude prices climbed on Venezuelan supply concerns. The White House reportedly directed military focus on enforcing an oil “quarantine” of Venezuela for the next two months, creating supply-side uncertainties. Meanwhile, Ukraine expanded attacks on Russian energy infrastructure—hitting not just refineries but also pipelines—injecting fresh risk premium into the oil complex.

China’s Currency Milestone Signals Policy Shift

China’s Shanghai Composite inched up just 0.10 percent to 3,963.68 after a choppy session, but the real action played out in the foreign exchange market. The yuan symbol strengthened past the key 7-per-dollar level in offshore trading—the first time since September 2024—signaling the People’s Bank of China’s willingness to engineer gradual currency appreciation. The central bank had already strengthened its daily reference rate to the strongest since September, reinforcing this directional intent. The move aims to restore market confidence amid mixed economic signals, with the yuan’s offshore move setting up potential follow-through in onshore trading.

Japan’s Tech Winners Rally on Budget Optimism

Japanese equities surged after the government unveiled a record $785 billion budget for the next fiscal year and revised its economic forecast higher. While industrial production contracted more than expected in November and unemployment stayed flat at 2.6 percent, the massive budget commitment convinced investors consumption and capital expenditure would accelerate. The Nikkei 225 rose 0.68 percent to 50,750.39 with the broader Topix index up 0.15 percent at 3,423.06. Tech names dominated gainers, with Fast Retailing, SoftBank and Advantest all climbing around 2 percent, suggesting the market is betting on business investment cycles turning higher.

Korean Tech Stocks Lead Regional Performance

Seoul’s Kospi average delivered more impressive gains, adding 0.51 percent to 4,129.68 and bringing its annual advance to an impressive 72 percent. The outperformance came from semiconductor and AI-linked names crushing expectations. Samsung Electronics soared 5.3 percent, chipmaker rival SK Hynix jumped 1.9 percent and AI investment vehicle SK Square climbed 4.2 percent. The sector rotation into big-cap tech names reflected investor confidence in earnings recovery and supply-demand rebalancing in memory chips.

U.S. Economy Crushes Forecasts; Wall Street Scores Record Closes

Underpinning the global risk-on backdrop was a U.S. GDP report that blew consensus away. Third-quarter growth came in at an annualized 4.3 percent—nearly a full percentage point above the 3.2 percent consensus estimate. Unemployment claims fell for a second consecutive week despite soft consumer confidence readings, painting a picture of a resilient labor market offsetting consumer caution. The Dow rose 0.6 percent and the S&P 500 added 0.3 percent to fresh record closing levels, while the tech-heavy Nasdaq Composite edged up 0.2 percent in the shortened Christmas Eve session.