Asia report: Markets near year-end in mixed state

(Sharecast News) - Asia-Pacific markets traded mixed on Monday as investors kicked off the final trading week of 2025, with cautious positioning despite a firm lead from Wall Street.

US equity futures were flat in early Asian hours after the S&P 500 closed at a fresh record on Friday and posted weekly gains as trading resumed following the Christmas holiday.

Commodity markets were volatile, with spot silver surging to a fresh record above $80 per ounce earlier in the session before pulling back sharply by more than 5% to $74.93 per ounce.

Analysts attributed the recent rally to speculative buying and persistent supply tightness, with depletion of freely traded inventory reportedly amplifying price moves as demand rises.

Tokyo benchmark falls as investors digest BoJ opinions

Japanese markets were mixed, with the Nikkei 225 slipping 0.44% to 50,526.92, weighed down by losses in Sumitomo Pharma, which fell 3.73%, Trend Micro, down 3.56%, and Otsuka Holdings, which lost 3.14%.

The broader Topix edged 0.1% higher to 3,426.52.

Attention remained on monetary policy after a summary of opinions showed Bank of Japan policymakers debating the need for continued rate increases following December's hike, which lifted the policy rate to a 30-year high of 0.75% from 0.5%.

Several board members argued that rates should be raised every few months, citing sticky inflation, a weak yen and still-negative real interest rates, while others urged caution given uncertainty around the neutral rate and global conditions.

Government representatives did not oppose the hike, signalling political backing, though concerns were raised about the impact of higher borrowing costs on capital expenditure and corporate profits.

China equities mixed, Australasia in the red

In mainland China, the Shanghai Composite rose 0.04% to 3,965.28, supported by sharp gains in Geo-Jade Petroleum, up 10.16%, ARTS Group, which climbed 10.04%, and Hang Xiao Steel Structure, also up 10.04%.

The Shenzhen Component underperformed, falling 0.49% to 13,537.10.

Hong Kong equities were weaker, with the Hang Seng Index down 0.71% at 25,635.23.

Sands China dropped 4.46% despite its parent, Las Vegas Sands, renewing trademark licensing arrangements with its Macau subsidiaries through 31 December 2028, reinforcing control over flagship properties including The Venetian Macao, The Parisian Macao and The Londoner Macao.

JD Health International declined 3.42% and CK Hutchison Holdings fell 3.35%.

South Korean stocks outperformed the region, with the Kospi jumping 2.2% to 4,220.56.

Keyang Electric Machinery surged 30%, Hyungji Elite rose 29.95% and Jahwa Electronics advanced 13.27%.

Australian equities moved lower, with the S&P/ASX 200 down 0.42% at 8,725.70, led by declines in Netwealth Group, which slid 6.4%, DroneShield, down 4.86%, and Mesoblast, which fell 3.1%.

New Zealand's S&P/NZX 50 was little changed, edging down 0.02% to 13,525.99, with losses in Investore Property, down 1.73%, Synlait Milk, which fell 1.59%, and Ebos Group, down 1.46%.

Dollar mixed against regional peers as oil pushes higher

In currency markets, the dollar weakened 0.19% against the yen to JPY 156.27, while it strengthened 0.17% on the Aussie to AUD 1.4916 and rose 0.49% against the Kiwi to NZD 1.7219.

Oil prices pushed higher, with Brent crude futures last up 2.01% on ICE at $61.86 per barrel, and the NYMEX quote for West Texas Intermediate gaining 2.03% to $57.89.

Reporting by Josh White for Sharecast.com.