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Asia-Pacific markets ended mostly higher in light holiday trading, with several major exchanges closed for Boxing Day, while gold and silver surged to fresh all-time highs as investors continued to seek safety from market volatility and policy uncertainty.

With participation thinned across the region, modest gains in Japan and South Korea set the tone, even as China and India edged lower. Precious metals, meanwhile, extended a powerful year-long rally driven by inflation concerns, cautious sentiment toward risk assets, and questions around the pace of future U.S. interest rate cuts.

Precious metals dominate the session

Gold prices jumped more than 1% to reach a new record of $4,530 per ounce, before easing slightly to around $4,508 per ounce in late Asian trading. Silver outperformed once again, climbing 4% on the day to hit an all-time high of $75.10 per ounce.

The surge caps an extraordinary year for metals. Gold is now up more than 71% year to date, while silver has gained an eye-catching 158%, reflecting strong investor demand for hard assets amid elevated geopolitical risks, inflation persistence, and growing skepticism toward high-valuation growth stocks.

Market strategists note that fears of an artificial intelligence-driven equity bubble, alongside uncertainty over the timing and scale of U.S. Federal Reserve rate cuts, have pushed investors toward assets perceived as inflation hedges and stores of value.

Japan stocks rise as inflation stays above target

Japan’s equity market posted moderate gains, supported by strength in technology and semiconductor-related stocks. The Nikkei 225 advanced 0.47%, while the broader Topix index rose 0.27%.

SoftBank jumped 2.86%, snapping a three-session losing streak, while chip-related names also moved higher. Advantest gained 2.65% and Lasertec added 1.57%, reflecting ongoing optimism around global semiconductor demand.

Economic data released Friday showed Tokyo’s core consumer price index rising 2.3% year over year in December. Although the figure eased from November’s 2.8% and came in below expectations of 2.5%, it remained above the Bank of Japan’s 2% inflation target. Tokyo inflation data is closely watched as a leading indicator for nationwide price trends, and the latest reading continues to support expectations that Japan’s central bank may pursue further policy normalization in the months ahead.

South Korea gains, China and India soften

South Korean equities also moved higher, with the Kospi climbing 0.53% and the tech-heavy Kosdaq adding 0.42%. Samsung Electronics rose as much as 5%, rebounding after losses in the previous session and providing a strong lift to the broader market.

Elsewhere, China’s CSI 300 slipped 0.15% in early trading, while Indian benchmarks moved slightly lower. The Nifty 50 declined 0.12% and the BSE Sensex fell 0.13%, as investors remained cautious amid mixed global cues and ongoing concerns about valuations.

Markets in Australia and Hong Kong were closed for the Boxing Day holiday, contributing to subdued regional volumes.

U.S. market momentum supports sentiment

U.S. equity futures edged higher during Asian hours, following another record-setting session on Wall Street earlier in the week. The S&P 500 rose 0.32% to close at a new all-time high of 6,932.05, marking its second consecutive record finish.

The Dow Jones Industrial Average climbed 288.75 points, or 0.60%, ending at a record 48,731.16, while the Nasdaq Composite added 0.22% to settle at 23,613.31. Strong U.S. performance has continued to underpin global sentiment, even as investors grow increasingly selective about risk.

Cautious equities, powerful metals trend

Friday’s session highlighted a growing divergence in global markets. While equity gains in Asia remained modest amid holiday-thinned trade, the relentless rise in gold and silver underscores deeper investor unease around inflation, monetary policy direction, and stretched asset valuations.

As the year draws to a close, market participants appear increasingly focused on capital preservation, positioning precious metals as one of the clearest beneficiaries of the current macroeconomic landscape.