CANBERA (dpa-AFX) - Asian stocks advanced on Monday despite rising geopolitical tensions and concerns over sluggish demand in China.
Investors also shrugged off U.S.-Venezuela tensions and shifted focus to upcoming U.S. economic data that could influence Federal Reserve policy.
U.S. 10-year bond yields were steady ahead of December's jobs report along with JOLTS and ADP employment figures, ISM PMIs, and the Michigan consumer confidence survey results due this week.
Fed Chair Jerome Powell's term ends in May, with four people on President Trump's short list to replace him. Traders currently expect two Fed rate cuts this year, despite the Fed projecting only one.
Philadelphia Fed President Anna Paulson said on Saturday that some modest further adjustments to the funds rate would likely be appropriate later in the year depending on the economic performance.
The dollar held firm in Asian trade and gold jumped more than 2 percent as the Trump administration's shock capture of Venezuelan President Nicolas Maduro increased investors' concerns about geopolitical risks.
Oil prices fell after OPEC+ decided to keep output unchanged through the first three months of the year.
China's Shanghai Composite index surged 1.38 percent to 4,023.42 despite fresh signs of slowing business growth. A private sector survey showed today that China's services activity expanded at its slowest pace in six months in December.
Hong Kong's Hang Seng index finished marginally higher at 26,347.24 after a choppy session. SMIC shares gained 1.9 percent after the China Integrated Circuit Industry Investment Fund (ICF) raised its stake in the chipmaker.
Japanese markets ended at over two-month highs, led by gains in large-cap semiconductor-related shares.
Advantest and Tokyo Electron both surged around 8 percent ahead of the annual CES technology trade show in Las Vegas this week.
Investors also cheered data that showed Japan's manufacturing activity steadied in December after five months of contraction.
The Nikkei average briefly topped 52,000 for the first time in about two months before ending 2.97 percent higher at 51,832.80. The broader Topix index closed up 2.01 percent at 3,477.52.
Seoul stocks surged to hit a record high, driven by a strong rally in semiconductor and other technology stocks. Samsung Electronics soared 7.5 percent and SK Hynix rallied 2.8 percent amid strong optimism over artificial intelligence-driven growth.
The Kospi average jumped 3.43 percent to 4,457.52, breaking the 4,400 mark for the first time as the leaders of China and South Korea hold their second meeting in as many months in Beijing.
Australian markets gave up early gains to end on a flat note ahead of the November CPI report due on Wednesday.
Uranium enrichment technology provider Silex Systems soared 9.4 percent and rare earths producers Iluka Resources and Lynas Rare Earths both surged over percent, while WiseTech Global, which is facing competitions concerns, tumbled 3.2 percent.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index gained 0.29 percent to close at 13,587.23.
U.S. stocks fluctuated before ending mostly higher on Friday as Wall Street kicked off trading in 2026 after its third consecutive year of double-digit percentage gains.
While the tech-heavy Nasdaq Composite edged down marginally, the S&P 500 rose 0.2 percent and the Dow added 0.7 percent to snap a four-day losing streak.
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