Financial markets across Asia presented a mixed picture on Friday, 26 December 2025, as investors navigated year-end trading. The session was marked by a historic surge in precious metals, with both gold and silver climbing to unprecedented levels, while equity indices diverged across the region.
Precious Metals Shine as Safe Havens
The standout performers were undoubtedly gold and silver. The price of gold gained 0.8% to reach $4,538.80 per troy ounce, setting a new all-time high. Silver's rally was even more dramatic, jumping 4.5% to $74.90 per ounce. This extends a sharp annual gain for both metals, driven by sustained buying from investors and central banks seeking stability.
Analysts point to a combination of factors fuelling the rally. Initial worries were sparked by the recent U.S. government shutdown, but the momentum has continued on expectations of further interest rate cuts from the U.S. Federal Reserve in the new year. A weaker U.S. dollar typically makes dollar-priced commodities like gold more attractive to holders of other currencies.
"Gold is doing what gold does when the world loses its anchor: it becomes the anchor," remarked Stephen Innes of SPI Asset Management. "For centuries, gold has been the one asset that doesn't blink. When politics goes sideways, when currencies fray, when inflation eats the furniture, gold is the one piece of collateral the world still treats as final."
Tokyo Stocks Advance on Defence Boost
In equity markets, Japan's Nikkei 225 index advanced 0.8% to 50,822.25, trading tantalisingly close to its own record highs. The bullish sentiment followed a significant policy move, as Japan's Cabinet approved a record defence budget plan for the coming fiscal year.
The new budget exceeds 9 trillion yen (approximately $58 billion), a historic high. Prime Minister Sanae Takaichi's government aims to bolster Japan's strike-back capability and coastal defences with investments in cruise missiles and unmanned arsenals. This push comes amid heightened regional tensions, particularly with China. Heavy industrial and high-tech companies were among the leaders of the market advance.
Regional Market Round-Up and Commodities
The performance across other Asian bourses was fragmented:
- Mainland China's Shanghai Composite index slipped 0.2% to 3,952.09.
- South Korea's Kospi picked up 0.3% to 4,120.04.
- Taiwan's Taiex jumped 0.6%.
- Shares fell in both Thailand and India.
Markets in Hong Kong, Australia, New Zealand, and Indonesia were closed for holidays. In currency trading, the dollar rose slightly against the yen to 156.09, while the euro edged up to $1.1787.
In other early Friday dealings, oil prices saw minimal movement. U.S. crude gained 6 cents to $58.41 a barrel, and Brent crude added 4 cents to $61.84. This follows a recent decline after prices spiked near $70 a barrel back in June. Meanwhile, the price of bitcoin rose 1.7% to $89,300.
Outlook for European and US Sessions
Trading volumes are expected to remain light as the year draws to a close, with most investors having already closed their positions. While most European markets remained shut on Friday, Wall Street was set to reopen for a full day of trading following the Christmas holiday.
