Asian stocks were mostly higher on Friday as trading volumes remained thin due to holidays in Japan, China, and New Zealand. The dollar weakened after its sharpest drop in eight years, with investors waiting to see the next Federal Reserve chief’s stance on interest rates. Gold rose nearly 1 percent amidst economic uncertainties. Expectations of two more Federal Reserve rate cuts in 2026 led investors to focus on key economic data releases next week. Hong Kong’s Hang Seng index was up 1.3 percent, Seoul stocks surged, and Australian markets were little changed. U.S. and European markets were closed for the New Year holiday.

In the U.S., new claims for unemployment benefits fell during the holiday week. Major indexes ended the year with significant gains, with the Nasdaq Composite up 20.4 percent, the S&P 500 up 16.4 percent, and the Dow up 13.0 percent. Economic uncertainties and AI-linked stocks dominated the market in 2025.

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