Asian stocks steady on Tuesday

Asian shares steadied on Tuesday as investors locked in strong year-end gains, while precious metals stabilised after a sharp pullback from record highs cooled an overheated rally amid thin holiday trading.

MSCI’s broadest index of Asia Pacific shares outside Japan edged up 0.1 per cent and was on track for an annual gain of 26.7 per cent, its best since 2017. Japan’s Nikkei slipped 0.1 per cent but remained up 26 per cent for the year. China’s CSI300 rose 0.2 per cent and Hong Kong’s Hang Seng gained 0.4 per cent, while US and European stock futures were largely steady. Wall Street ended lower overnight as major technology stocks retreated, though US equities were still poised to finish 2025 near record highs after a volatile year.

In currency markets, the US dollar was steady ahead of minutes from the Federal Reserve’s December meeting, with the dollar index on track for an annual fall of nearly 10 per cent, its steepest drop in eight years. The yen hovered at 156.06 per dollar, and the euro stood at $1.1777, set for a yearly gain of 13.7 per cent. US Treasury yields edged lower, with the two-year yield down to 3.4586 per cent and the 10-year yield on course for a 46 basis point decline for the year.

Attribution: Reuters