Tech Momentum Lifts Global Markets as Investors Navigate Holiday Lull

Holiday-thinned trading saw global equities extend their bullish momentum on Friday, with strength primarily concentrated in technology stocks across Asia-Pacific regions. The upbeat sentiment carried over from Wall Street’s resilient performance, where major benchmarks logged their fifth consecutive day of gains despite truncated Christmas Eve sessions.

U.S. Stock Surge Sets Tone for Global Rally

The S&P 500 reached fresh record highs on Wednesday, gaining 0.3 percent as the broader market shrugged off seasonally thin trading conditions. Market enthusiasm was anchored by surprisingly robust economic data—U.S. GDP expanded at an annualized 4.3 percent in Q3, substantially outpacing economist consensus of 3.2 percent. The Dow Jones climbed 0.6 percent to record territory while the Nasdaq Composite inched up 0.2 percent, reflecting sustained investor confidence despite mixed consumer metrics and modestly declining jobless claims.

Precious Metals and Energy Reflect Geopolitical Backdrop

Silver pierced the $75-per-ounce barrier for the first time while gold reached an unprecedented $4,531 per ounce, benefiting from U.S. dollar depreciation and elevated geopolitical tensions. Venezuela supply concerns rattled energy markets, with oil prices climbing higher after U.S. authorities reportedly implemented stringent measures to restrict Venezuelan petroleum flows. Simultaneously, Ukrainian military operations intensified against Russian energy infrastructure, adding another layer of supply-side uncertainty.

Asian Equities Respond to Regional Growth Signals

China’s measured gains: The Shanghai Composite inched forward 0.10 percent to settle at 3,963.68, while the offshore yuan breached the 7-per-dollar level—a psychological threshold unseen since September 2024. People’s Bank of China officials strengthened their daily reference rate, signaling potential currency appreciation designed to bolster market sentiment.

Japan’s tech-led rebound: Tokyo markets surged following revised economic projections and an announced $785 billion stimulus budget for the upcoming fiscal year. The Nikkei average climbed 0.68 percent to 50,750.39 while the Topix index rose 0.15 percent to 3,423.06. Fast Retailing, SoftBank, and Advantest all advanced roughly 2 percent. Mixed employment and production statistics failed to derail the rally, with jobless rates holding steady at 2.6 percent despite weaker industrial output.

Seoul’s tech powerhouse: South Korean equities outperformed, with the Kospi adding 0.51 percent to close at 4,129.68, marking a 72 percent annual gain. Technology leaders dominated gains—Samsung Electronics surged 5.3 percent, SK Hynix rallied 1.9 percent, and AI-focused SK Square climbed 4.2 percent.

Looking Forward

Underlying market dynamics suggest investor positioning for anticipated Federal Reserve rate reductions extending through end-2026, with technology sectors benefiting most from lower-rate expectations. Holiday liquidity constraints may persist into early January, though foundational economic strength and geopolitical risk premiums are likely to sustain equity support levels.