The Times Of India·2026-01-02 05:15Market Performance - Hong Kong's Hang Seng index surged 2.2% to 26,189.79, with technology stocks leading the rally [4] - South Korea's Kospi climbed 1.5% to 4,277.94, while Australia's S&P/ASX 200 edged up 0.2% to 8,727.30 [4] - Chinese tech majors saw significant gains, with Alibaba jumping 3.2% and Baidu rallying 7.5% after announcing plans to spin off its AI chip unit, Kunlunxin [4] Economic Outlook - Asian equities are supported by optimism regarding the rapid adoption of artificial intelligence, which is expected to drive demand for computer chips, data centers, and related infrastructure [4] - Despite weak manufacturing data, trade activity in the region has shown resilience, with exports from most countries surging in recent months [4] - The near-term outlook for Asia's export-oriented manufacturing sectors remains favorable according to Capital Economics [4] US Market Insights - US futures pointed higher, with S&P 500 futures up 0.5% and Dow Jones Industrial Average futures gaining 0.3% [3] - The S&P 500 rose 16.4% in 2025, setting 39 record highs, while the Nasdaq surged 20.4% and the Dow ended 13% higher [3] - Wall Street's rally was driven by enthusiasm around artificial intelligence, strong corporate earnings, and three interest rate cuts by the US Federal Reserve [3] Commodity Prices - Silver rebounded 3.5% after a previous drop of 9.4%, gaining more than 140% in 2025 [5] - Gold rose 1.1%, ending the year with a 63.7% gain [5] - Oil prices increased, with US benchmark crude adding 35 cents to $57.77 per barrel and Brent crude climbing 35 cents to $61.20 per barrel [5]