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Asian Markets Rise as US Gains Increase Year-End Optimism

Markets

Business Honor
22 December, 2025

Asian stocks may open higher after US market gains, as investors stay hopeful even with low holiday trading and worldwide economic uncertainty.

Asian equity markets are expected to open higher this week, after a strong advance in US stocks that raised expectations for an excellent year-end. Stocks indicated gains across the region, with Australian shares starting higher and markets in Hong Kong and Japan also rising. Though, trade volumes are expected to be less due to the holiday season, which could result in larger price movements.

The upbeat feeling comes as Wall Street ended last week on a high note. US markets gained strongly last day, recovering earlier losses and finishing the week higher. Investors came in to buy after recent drops caused by concerns about high valuations in AI-based businesses and questions about how soon the Federal Reserve will decrease interest rates. The expiration of quarterly options and futures contracts increased trading activity, as investors changed their portfolios for the coming year.

Other kinds of assets also showed increased risk awareness. Bitcoin continued to increase, while silver achieved a new high record, suggesting an increase in demand for other assets. Oil prices were under focus as geopolitical tensions remained high, particularly the US's efforts to reduce Venezuelan oil supplies, which could have an impact on world supply.

In Asia, the focus is on China's one- and five-year loan prime rate decisions. Most economists expect levels to stay unchanged, but markets believe Chinese policymakers could offer additional support next year if economic growth slows. Expectations for future easing have helped regional markets. In the US, statements from Federal Reserve officials suggesting that there is no need to lower interest rates have pushed government bond yields slightly higher, though markets continue to predict reduced interest rates in 2026.