TOKYO (AP) — Asian shares mostly slipped Thursday, led by losses of more than 2% in Chinese benchmarks, as the region's main stock market in Tokyo stayed closed for New Year holidays.
U.S. futures advanced and oil prices also gained.
Investors remain cautious over what U.S. President-elect Donald Trump might do once he takes office, including raising tariffs on imports from China and other Asian countries.
The Shanghai Composite index dropped 2.9% to 3,256.26 and the Hang Seng, in Hong Kong, fell 2.2% to 19,620.78.
Upbeat talk by Chinese leader Xi Jinping in a New Year's address did little to raise optimism among market players who are hoping for more aggressive action to support the economy and boost share prices.
“We have proactively responded to the impacts of the changing environment at home and abroad. We have adopted a full range of policies to make solid gains in pursuing high-quality development. China’s economy has rebounded and is on an upward trajectory,” Xi said in a New Year message according to the official Xinhua News Agency.
Elsewhere in the Asia-Pacific, Australia's S&P/ASX 200 rose 0.5% to 8,201.20 and South Korea's Kospi was flat at 2,398.91.
On Wednesday, markets were closed on Wall Street for the New Year’s Day holiday, as were nearly all other world markets.
Investors will get an updated snapshot of U.S. construction spending for November on Thursday, while U.S. manufacturing numbers for December will be released Friday.
U.S. stock indexes closed mostly lower Tuesday as the market delivered a downbeat finish on the final day of another milestone-shattering year on Wall Street.
The S&P 500 gave up an early gain to finish down 0.4%. The benchmark index, which set 57 record highs in 2024, racked up a 23.3% gain in 2024. This was its second straight year with a gain of more than 20%. The last time the index had as big a back-to-back annual gain was 1998.
The Dow Jones Industrial Average slipped 0.1%, and the Nasdaq composite lost 0.9%.
Big Tech stocks had led last year’s rally, pushing the Nasdaq to a yearly gain of 28.6%. The Dow, which is far less heavily weighted with tech, rose 12.9%.
The U.S. markets’ stellar run was driven by a growing economy, solid consumer spending and a strong jobs market.
Skyrocketing prices for companies in the artificial-intelligence business, such as Nvidia and Super Micro Computer, helped lift the market to new heights.
After three interest rate cuts in 2024, the Fed has signaled a more cautious approach heading into 2025 with inflation remaining sticky as the country prepares for Trump's transition into the White House. Trump’s threats to hike tariffs on imported goods have raised anxiety that inflation could be reignited as companies pass along the cost of tariffs.
In other dealings early Thursday, benchmark U.S. crude oil rose 14 cents to $71.86 a barrel. Brent crude, the international standard, added 12 cents to $74.76 a barrel.
The U.S. dollar slipped to 156.80 Japanese yen from 157.40 yen. The euro cost $1.0365, up from $1.0359.
