Asian stocks hit six weeks-high

MSCI’s broadest index of Asia-Pacific shares hit its highest level since November 14

Asian stocks rose to their highest in six weeks on Friday and a strong rally in precious metals showed no signs of tempering as investors sought to close out the year on a high while a softer yen kept intervention risk in the fray.

Markets in Australia, Hong Kong and most of Europe are closed on Friday, with liquidity expected to be thin. Still, investors are attempting a year-end rally, with risk appetite perking up this week.

Topix jumped to a record high and was last up 0.5%. South Korea’s benchmark index rose 0.6%, taking its annual gain to 72% and making it the best-performing major stock market in the world this year.

China’s blue-chip stock index was 0.27% higher, on pace to clock an 18% gain for the year, its strongest annual surge since 2020.

That pushed MSCI’s broadest index of Asia-Pacific shares to its highest level since November 14. The index was last up 0.4% and has added 25% so far this year.

Beyond stocks, precious metals are in the spotlight with spot silver surging more than 4% to a record high on Friday, while gold also hit a record high, last fetching $4,503.39 per ounce.

Soojin Kim, commodities analyst at MUFG, said the rally has been supported by heavy central bank purchases, strong inflows into gold-backed ETFs, and investor concerns over currency debasement and rising global debt.

Gold has surged more than 71% this year, on pace for its strongest annual gain since 1979, while silver is up 158% for the year.

With major banks forecasting further gains into 2026, the strength of physical demand and persistent geopolitical and monetary uncertainties suggest the precious metals rally could continue, Kim said in a note.