BANGKOK (AP) – Asian shares displayed a mixed performance on Monday following a lackluster post-Christmas session on Wall Street, alongside growing tensions concerning Taiwan.
U.S. futures remained relatively unchanged. The Chinese military announced it had dispatched air, navy, and rocket troops to conduct joint military drills around Taiwan, a self-governing island claimed by Beijing. These drills were aimed at issuing warnings against what Beijing termed "separatist and external interference" forces. In response, Taiwan reported that it had placed its military on alert, labeling the Beijing government as "the biggest destroyer of peace."
The military exercises come on the heels of Beijing's expressed anger over U.S. arms sales to Taiwan, as well as comments made by Japanese Prime Minister Sanae Takaichi, who indicated that Japan's military could intervene if China were to act against the island. Notably, the Chinese military's statement on Monday did not cite either the United States or Japan.
As for the financial markets, Taiwan’s benchmark index rose by 0.8%. Meanwhile, Hong Kong's Hang Seng index increased by 0.3%, reaching 25,887.33, and the Shanghai Composite index also gained 0.3%, ending at 3,975.92. Conversely, Tokyo's Nikkei 225 dipped by 0.2%, closing at 50,663.90.
In South Korea, the Kospi index surged by 1.9%, settling at 4,207.36, while the Australian S&P/ASX 200 saw a decrease of 0.3%, finishing at 8,732.70. In commodity markets, gold prices fell by 0.4%, reaching $4,535.50 per troy ounce. On the other hand, silver experienced a significant rise, increasing by 3% to $79.87, driven to record levels due to supply constraints.
The previous uptick in gold prices was largely attributed to concerns related to the ongoing U.S. government shutdown. Additionally, expectations of potential interest rate cuts by the U.S. Federal Reserve in the upcoming year have led to a weakening of the dollar against other currencies, thus boosting the demand for gold. Both gold and silver have surged in value this year as investors sought refuge in safer assets amid stock and bond market volatility. Notably, miners like Freeport-McMoRan reported solid gains, rising by 2.2% on Friday.
Trading remains light as many institutional investors have closed out their positions for the year. Last Friday, the reopening session post-Christmas saw the S&P 500 index decrease by less than 0.1%, ending at 6,929.94, while the Dow Jones Industrial Average also fell by less than 0.1%, closing at 48,710.97. The Nasdaq composite followed suit with a 0.1% drop, reaching 23,593.10.
With only three trading days remaining in 2025, the S&P 500 has risen nearly 18% this year, bolstered by the deregulatory policies of the Trump administration and a strong investor optimism surrounding the future of artificial intelligence. In commodity trading, the U.S. benchmark crude oil price rose by 60 cents, reaching $57.34 per barrel, while Brent crude saw an increase of 62 cents, climbing to $60.86 per barrel. Prior to this uptick, both U.S. and Brent crude had experienced declines of 2.8% and 2.6% respectively on Friday.
The U.S. dollar declined against the Japanese yen, falling to 156.28 from 156.56, while the euro remained unchanged at $1.1770.
