（Singapore, 24.12.2025）Asian share markets moved higher on Wednesday, taking their cue from Wall Street after US stocks closed at fresh record highs. Strong economic data from the United States, combined with renewed optimism around technology stocks and a powerful rally in commodities, lifted investor sentiment as markets head toward the end of the year.
Across the region, a key MSCI index tracking Asian equities rose for a fourth straight session, led mainly by gains in technology shares. The upbeat mood followed another strong performance in the US, where the S&P 500 climbed for the fourth day in a row and set a new all-time high. Trading volumes were relatively light, reflecting the approach of the Christmas holiday, but that did little to dampen confidence.
Australia was an exception, with shares edging slightly lower in a shortened trading day. Elsewhere, most Asian markets advanced as investors reacted positively to signs that the world’s largest economy remains on solid footing.
In the US, data released overnight showed that inflation-adjusted gross domestic product expanded at an annualised pace of 4.3% in the third quarter. This was the fastest growth rate in two years and exceeded almost all economist forecasts. The strong reading reinforced the view that American consumers are still spending and that corporate earnings can continue to grow into 2026.
Market participants said this resilience is helping to calm earlier worries about stretched valuations, particularly in the technology sector, and about the massive sums being invested in artificial intelligence. Investors now appear more comfortable that big companies can deliver the earnings needed to justify current prices.
“Earnings have continued to surprise on the upside,” said one market strategist, adding that if consumers remain resilient through the holiday season and into the final quarter of the year, it should support both economic growth and corporate profits.
The rally was especially clear in large technology stocks. In the US, a major index tracking big tech names gained close to 1%, while smaller companies lagged behind. The broader S&P 500 briefly climbed above the 6,900 level, underscoring how much the market’s momentum has been driven by a relatively narrow group of companies.
Outside equities, commodities stole the spotlight with dramatic price moves. Gold surged to a new record above US$4,500 an ounce, boosted by its traditional role as a safe haven. Recent geopolitical tensions, including Washington’s actions targeting oil tankers linked to Venezuela, have added to demand for the precious metal.
Other metals also hit historic highs. Platinum and silver reached record levels, while copper prices climbed above US$12,000 a tonne for the first time ever. Analysts said the rally reflects a mix of supply concerns, expectations of long-term demand linked to energy transition and electrification, and the weaker US dollar.
The dollar continued to slide, extending a decline that has now lasted several days. A Bloomberg index tracking the greenback is on course for its worst annual performance in eight years. Options markets suggest traders are positioning for further weakness into the final days of 2025 and beyond.
US government bonds were relatively steady, though short-dated yields remained elevated. Two-year Treasury yields, which tend to reflect expectations for Federal Reserve policy, stayed above 3.5%. That signals investors are not expecting imminent interest-rate cuts, despite the softer dollar and rally in risk assets.
Indeed, money markets are pricing in less than a 20% chance that the Fed will lower rates at its January meeting. Strong economic growth has reduced the urgency for near-term easing, even as inflation shows signs of cooling and the labour market loses some momentum.
Still, politics remains a factor. President Donald Trump reiterated that he wants his next Federal Reserve chair to cut interest rates if markets are performing well. His comments come as he prepares to name a replacement for current Fed Chair Jerome Powell, adding another layer of uncertainty to the outlook for US monetary policy.
Meanwhile, US Treasury Secretary Scott Bessent floated the idea of re-examining the Fed’s long-standing 2% inflation target once price growth is sustainably back at that level, a suggestion that could shape longer-term policy debates.
Seasonal factors are also supporting sentiment. Historically, the days around Christmas have been kind to equity markets. Research shows that the trading session after Christmas has been one of the most consistently positive days of the year for US stocks, reinforcing hopes for a so-called “Santa Claus rally.”
“The market is taking the latest data fairly positively,” said one equity strategist, noting that strong growth combined with easing inflation resembles a “Goldilocks” scenario — not too hot, not too cold.
In currency markets, South Korea’s won strengthened after authorities warned against excessive weakness, as the currency approached the psychologically important level of 1,500 per dollar. In India, the central bank announced fresh steps to boost liquidity and support the rupee, which has been Asia’s worst-performing currency this year.
Looking ahead, many investors believe the path for markets in 2026 will depend less on interest-rate cuts and more on earnings growth and broader participation beyond mega-cap stocks. While valuations, especially in technology, remain high, analysts note that the rally has gradually broadened, which could help sustain gains.
For now, strong US growth, robust demand for technology shares and a booming commodities complex are giving global markets a confident send-off as the year draws to a close.
