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Most Asian equity markets advanced in thin year-end trading on Friday, with Japan’s TOPIX index surging to a record high as investors assessed a fresh batch of economic data from Tokyo. Activity across the region remained subdued, with several major markets — including Australia, New Zealand and Hong Kong — closed for holidays, while U.S. index futures traded largely flat during Asian hours.
Japan outperforms on tech strength; Tokyo CPI remains above BOJ target
Japanese shares led regional gains, with the TOPIX climbing more than 1% to an all-time high, supported by strength in heavyweight technology names. The Nikkei 225 also rose 0.6%, reflecting renewed optimism around Japan’s corporate earnings outlook and semiconductor demand.
Investors digested a mixed set of macro signals. Tokyo’s consumer inflation eased in December, but remained above the Bank of Japan’s 2% target — a development that reinforced expectations the BOJ could continue gradually normalising monetary policy after years of ultra-loose settings.
At the same time, data showed factory output slipped in November, underscoring persistent softness in manufacturing segments such as autos and electronics. However, retail sales improved, pointing to resilient household spending and helping temper concerns over broader economic momentum.
Broader Asia trades cautiously on light volumes
Elsewhere in the region, trading was subdued but broadly positive. South Korea’s KOSPI gained 0.5%, extending a rebound in chipmakers as investors tracked overnight strength in Wall Street technology stocks and remained optimistic about continued investment in artificial intelligence and memory demand.
In mainland China, the CSI 300 rose 0.3% and the Shanghai Composite added 0.2%, though sentiment remained cautious amid lingering concerns about growth and the property sector.
Markets were more muted elsewhere: India’s Nifty 50 slipped 0.3%, while Singapore’s Straits Times Index was little changed, reflecting the broader wait-and-see tone heading into the final trading sessions of the year.
With liquidity thin and key global catalysts on pause, investors largely stuck to selective positioning — leaving Japan’s record-setting performance as the standout move in an otherwise quiet regional session.
