The MSCI Asia Pacific Index extended its year-end rally, rising for a sixth consecutive day. US shares closed at a record high on Wednesday and most markets in Asia, the US and Europe were closed Thursday for Christmas Day.
Equity bulls are pinning their optimism on what’s known as the “Santa Claus Rally” to push stocks to fresh records even as exuberance over artificial intelligence and the Federal Reserve’s interest-rate path are being questioned. The rally is traditionally seen as taking place on the final five trading sessions of a year and the first two of the new one.
“As equity markets enter the fourth year of a bull market, our underlying market call remains constructive,” Scott Chronert, head of US equities strategy at Citigroup Inc. wrote in a note this week. “The current fundamental backdrop clearly has the opportunity for an ongoing AI-related tailwind to large-cap growth.”
The S&P 500 Index gained for a fifth day Wednesday in a shortened session ahead of the Christmas holiday. The VIX index of the S&P 500’s expected volatility fell to the lowest this year.
Elsewhere, the main moves were among precious metals. Silver gained for a fifth day and gold climbed as much as 0.6% as geopolitical tensions persisted.
Spot silver advanced as much as 2.2% to $73.4393 an ounce. The white metal has risen about 150% this year in a rally that has accelerated since a historic short squeeze in October.Gold for immediate delivery edged toward its record above $4,525 an ounce that was hit on Wednesday. Frictions in Venezuela, where the US has blockaded oil tankers, have added to the precious metal’s haven appeal.
A key move on Thursday was China’s yuan strengthening past the psychological milestone of 7 per dollar in offshore trading for the first time since September 2024. Gains have been driven by speculation the central bank will allow gradual currency appreciation to boost market confidence. The move came after the People’s Bank of China strengthened its daily reference rate to the strongest level since September 2024.
