Asian Stocks Mixed in Thin Holiday Trading

Asian stock divergence was evident on Thursday as most markets traded lightly during the Christmas holiday, with several regional and global exchanges closed.

In Tokyo, the Nikkei 225 edged down less than 0.1% to 50,317.43 points after nearly 30% annual gains.

The dollar slipped to 155.70 yen, while the euro held at $1.1780.

Mainland Chinese markets posted modest gains, with the Shanghai Composite rising 0.3%, reinforcing the theme of Asian stock divergence, while Hong Kong remained closed.

Monetary signals

The People’s Bank of China reassured investors by pledging adequate liquidity to support financing, growth and inflation targets after keeping short-term policy rates unchanged.

Meanwhile, equities in Thailand and Indonesia declined, underlining ongoing Asian stock divergence across the region.

Wall Street overview

In the United States, the S&P 500 gained 0.3% to 6,932.05, the Dow Jones Industrial Average rose 0.6% to 48,731.16, and the Nasdaq Composite advanced 0.2% to 23,613.31.

Trading volumes remained thin at about 1.8 billion shares on the New York Stock Exchange due to early closures, and subdued activity is expected to persist toward year-end.

Investors are now focusing on the outlook for the US economy and Federal Reserve interest rate policy as Asian stock divergence continues to shape global market sentiment.