Japan’s Nikkei rises as Topix climbs to record high, Wall Street futures muted

Most Asian stock markets climbed on Friday amid light year-end trading, with Japan’s Topix index reaching a record high as investors focused on Tokyo’s consumer inflation and factory output data.

Trading volumes across the region remained subdued, with several major markets, including Australia, New Zealand, and Hong Kong, closed.

Meanwhile, Wall Street futures were largely flat during Asian hours following gains earlier in the week.

Tech stocks lift Asian market

Japan’s Nikkei 225 gained 0.68 percent on Friday as the Topix surged to a record high, last trading up 0.15 percent. South Korea’s benchmark Kospi rose 0.51 percent, bringing its annual gain to 72 percent and making it the world’s best-performing major stock market this year.

Gains across the Asian stock market were supported by strength in technology stocks as investors digested a series of domestic economic reports. Data showed that Tokyo’s inflation eased in December compared with the previous month but remained above the Bank of Japan’s target, reinforcing expectations that the central bank may continue normalising monetary policy.

Additional figures painted a mixed picture of Japan’s economic recovery: factory output fell in November, reflecting weakness in manufacturing sectors such as autos and electronics, while retail sales increased, indicating resilient consumer spending.

Meanwhile, China’s blue-chip CSI300 climbed 0.32 percent, on track for an 18 percent yearly increase, its strongest annual rise since 2020.

These gains lifted MSCI’s broadest index of Asia-Pacific shares to its highest level since November 14, with the index last up 0.20 percent and up 25 percent for the year.

Precious metals gain investor focus

In the Indian stock market, the Nifty 50 dipped 0.38 percent, while Singapore’s Straits Times Index was last down 0.11 percent.

Beyond equities, precious metals drew investor attention, with spot silver jumping more than 4 percent to a record high on Friday, while gold also reached a record peak, last trading at $4,503.39 an ounce. Gold has risen over 71 percent this year, on track for its strongest annual gain since 1979, while silver has surged 158 percent year-to-date.

As the new year approaches, investors are closely watching for the timing and scale of potential U.S. Federal Reserve interest rate cuts, with markets pricing in at least two reductions in 2026, though no move is expected before June. The Fed has signaled one more cut next year, but divisions within the central bank have left investors uncertain about the U.S. policy trajectory.

Read: UAE gold prices rise to AED543.25 as global rates hit new high on rising Fed rate cut bets

U.S. dollar set for 0.8 percent weekly decline

In the U.S. stock market, S&P 500 futures were down 0.054 percent, while Nasdaq futures declined 0.043 percent.

Investors are also awaiting President Donald Trump’s nomination for a new Federal Reserve chair to succeed Jerome Powell, whose term ends in May, with any hints of his choice likely to influence markets in the coming week.

The U.S. dollar has come under pressure, lifting the euro, sterling and Swiss franc to recent highs. The dollar index, which tracks the greenback against six major currencies, was steady at 97.935 in Asian trading on Friday and was set for a 0.8 percent weekly decline, its weakest performance since July.

The Japanese yen edged slightly lower to 156.23 per U.S. dollar but is on track for a 1 percent weekly gain, its largest since late September, following repeated verbal warnings from Tokyo that have kept intervention risks in play.