Asian markets mostly traded in green on Monday, beginning the week on a positive note as investors remained cautious but optimistic, awaiting fresh signals from the US Federal Reserve. Attention is pinned on the minutes of the Fed’s December policy meeting, which is due for release on Tuesday. Meanwhile, recent strength in precious metals also showed signs of easing.In Hong Kong, the Hang Seng Index traded at 25,944, adding 125 points or 0.49%. Japan’s Nikkei was down over 200 points to 50,550. Shanghai and Shenzhen added 0.4% and 0.19%, respectively. In Korea, Kospi gained 1.6%, to reach 4,197 at 8:40 AM IST. With only a handful of trading sessions left in the year, sentiment has been supported by expectations that US interest rates could be cut further, alongside confidence that the rally led by technology stocks has not yet run out of steam. Earlier this month, the Federal Reserve reduced borrowing costs as widely anticipated. However, it also struck a more measured tone, suggesting rates could remain unchanged at its next meeting, after two policymakers opposed a cut and one pushed for a deeper reduction.On the commodities front, gold and silver pulled back after surging to record levels in recent days. Both metals have benefited from strong buying interest, fuelled by expectations that lower interest rates would enhance their appeal, as well as their traditional role as safe-haven assets during times of uncertainty. Geopolitical tensions, including US strikes in Nigeria and a blockade involving Venezuelan oil tankers, have further added to their attractiveness. Gold was hovering near $4,500 on Monday, after topping out just under $4,550 late last week. Silver slipped to $77.50, having briefly touched a record $80. The metal’s sharp rise has also been underpinned by tightening supply and rising industrial demand. Oil prices recovered some ground after falling more than two percent on Friday, as markets assessed developments from weekend talks between US President Donald Trump and Ukraine’s President Volodymyr Zelensky on possible peace proposals. Trump said on Sunday that an agreement to end Russia’s invasion of Ukraine was closer than ever, though he acknowledged there had been no clear breakthrough on territorial questions. He added that it would become evident within weeks whether the nearly four-year-long conflict, which has claimed tens of thousands of lives, could be brought to an end.
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