Asian Markets Rise as AI Rally Caps 2025, Gold and Silver Hit Record Highs

Asian shares edged higher on Wednesday, rounding off a strong finish to 2025 as artificial intelligence-driven optimism continued to fuel global equity markets. The positive momentum followed an overnight rally on Wall Street, where the S&P 500 closed at a fresh record, signaling the long-awaited Santa Claus rally had finally taken hold despite thin year-end liquidity.

Investor sentiment was supported by robust U.S. economic data showing the economy expanded much faster than expected in the third quarter. While the data lifted risk assets such as stocks, it put pressure on bonds, contributing to shifts across global asset classes.

Commodities remained the standout performers. Gold prices surged to another all-time high, with spot gold climbing 0.8% to $4,524 per ounce, marking an extraordinary 72% gain for the year. Silver also extended its bullish run, jumping 1.2% to a record $72.27 per ounce and posting an annual increase of nearly 150%, making it one of the best-performing assets of 2025. The rally in precious metals reflects strong demand driven by inflation hedging, central bank buying, and sustained investor interest.

Across Asian equity markets, MSCI’s broad Asia-Pacific index excluding Japan rose 0.3% and ended the year up 26%, its strongest annual performance since 2017. Japan’s Nikkei advanced 0.4% on the day and also gained 26% for the year, while South Korea emerged as the regional outperformer with a remarkable 72% annual surge, supported by technology and semiconductor stocks.

In currency markets, the Japanese yen strengthened for a third consecutive session amid renewed speculation of potential intervention by Japanese authorities. The U.S. dollar weakened to 155.78 yen, retreating from levels that previously triggered action. The euro held steady near $1.18 after climbing 14% this year, while the dollar was down roughly 10% against major peers in 2025.

U.S. Treasury yields reflected expectations of continued Federal Reserve rate cuts, with the two-year yield down sharply for the year and the 10-year yield also ending lower. Meanwhile, oil prices were largely unchanged in early trading but remained on track for a third straight annual decline, underscoring ongoing concerns about global demand.