Asian Stocks Hold Near Records as Silver Falls From Historic Peak Above $80

Asian stocks gained 0.20% in early trading while maintaining positions near record highs, as silver experienced dramatic volatility after briefly surging past $80 per ounce for the first time before reversing course. The MSCI All Country World Index remained little changed after climbing 1.40% last week to finish at a new all-time high.

Silver's Historic Rally and Sharp Reversal

Silver achieved a milestone breakthrough by rallying 6.00% and pushing beyond $80 per ounce for the first time in trading history, before dramatically reversing course and falling more than 2.00%. This volatile session highlighted the extreme conditions driving precious metals markets.

Metal:	Peak Performance	Current Status	Key Development
Silver:	+6% to above $80/oz	Down 2%+ from peak	First time above $80, then reversal
Gold:	Record $4,549/oz Friday	Down 1.1% to $4,484.95/oz	Retreating from records
Platinum:	Record highs Friday	Following gold lower	Part of metals correction

"We are witnessing a generational bubble playing out in silver," noted Tony Sycamore, market analyst at IG Australia. "Relentless industrial demand from solar panels, EVs, AI data centres and electronics, pushing against depleting inventories, has driven physical premiums to extremes."

Global Equity Markets Maintain Momentum

Despite the precious metals volatility, equity markets continued their strong year-end performance. US stock futures remained steady after the S&P 500 finished near an all-time high, while regional Asian markets showed mixed but generally positive sentiment.

Market/Index:	Current Performance	Annual Performance	Status
MSCI World Index:	Little changed	Nearly +22%	At all-time high
Asian Shares:	+0.2%	Strong yearly gains	Near records
Japan's Topix:	+0.1%	Solid performance	Positive momentum
Australia's S&P/ASX 200:	-0.1%	Strong yearly gains	Minor decline

The MSCI gauge has risen nearly 22.00% in 2025, headed for a third straight annual gain and the biggest since 2019, reflecting sustained investor confidence throughout the year.

Federal Reserve Focus and Market Outlook

Investors are preparing for crucial insights into Federal Reserve policy direction as markets await the FOMC minutes from December's meeting. The central bank's three successive rate cuts have provided significant tailwinds for precious metals and broader market sentiment.

Focus Area:	2026 Impact	Market Significance
Fed Rate Path:	Timing of future easing	Major market determinant
AI Trends:	Key rally driver	Crucial for stock performance
FOMC Minutes:	Policy insights	Committee debate details

"The focus this week will be on the release of the FOMC minutes," according to Sycamore. "Markets will scour the minutes for deeper insights into the committee debates on the balance of risks and the timing of future easing."

Regional Developments and Currency Movements

Chinese markets remained in focus after the nation pledged to broaden its fiscal spending base in 2026, signaling sustained government support. However, weekend data showed China's industrial profits fell for a second month in November, highlighting persistent challenges from weakening domestic demand and deflation pressures.

Asset Class:	Current Movement	Key Driver
Dollar Index:	Little changed	End of worst week since June
Japanese Yen:	+0.3% to 156.14 per dollar	Regional strength
Bitcoin:	+0.7% to $88,169.64	Crypto recovery
Oil (WTI):	+0.8% to $57.19/barrel	Chinese demand prospects

Geopolitical developments continue influencing markets as Trump reported making "a lot of progress" in talks with Ukrainian President Volodymyr Zelenskiy regarding a potential peace deal to end Russia's invasion. Treasuries remained on pace for their best year since 2020 following the Fed's three rate cuts, despite being set for a monthly loss.

Asia-Pacific stock markets opened with broad-based gains, continuing the positive momentum from Wall Street where major indices advanced following the release of softer US Consumer Price Index (CPI) data. The encouraging inflation data from the United States has provided a supportive backdrop for regional markets, with investors displaying renewed optimism across key Asia-Pacific exchanges.

Regional Market Performance

The morning trading session showcased strong performance across major Asia-Pacific indices, with all three key markets posting notable gains.

Index	Performance
ASX 200	+0.60%
Nikkei 225	+0.80%
KOSPI	+0.80%

The Australian ASX 200 gained 0.60% in early trading, while both the Japanese Nikkei 225 and South Korean KOSPI demonstrated stronger momentum with identical gains of 0.80%. This synchronized upward movement across the region reflects the positive sentiment spillover from US markets.

Market Drivers and Focus

US Inflation Data Impact

The regional gains can be attributed to the positive handover from Wall Street, where most major indices recorded advances following the release of softer CPI data. The encouraging US inflation figures have boosted investor confidence and provided a favorable environment for risk assets across Asia-Pacific markets.

Bank of Japan Outlook

Market participants are now directing their attention toward the Bank of Japan (BoJ), with expectations building around potential policy announcements or decisions that could influence regional market dynamics. The central bank's actions and communications are being closely monitored by investors as they assess the broader monetary policy landscape in the region.

The current market environment demonstrates the interconnected nature of global financial markets, with positive developments in US inflation data translating into broad-based gains across Asia-Pacific trading sessions.