Dec 26, (V7N) - Asian stock markets experienced gains in light Boxing Day trading on Thursday, extending the festive "Santa Rally" despite major markets like Hong Kong and Sydney remaining closed for the holiday. The rally was fueled by positive sentiments from Wall Street and optimistic developments in the region.

Japan's Nikkei 225 index climbed 0.5% by mid-session, spurred by a Christmas Eve tech rally in the U.S. and significant gains for Toyota, the nation’s leading automaker. A report in the Nikkei business daily suggested Toyota is aiming to double its return on equity, pushing its shares up by over 5%. The Bank of Japan’s governor, Kazuo Ueda, refraining from signaling imminent interest rate hikes, also contributed to the bullish mood in Japan.

China’s markets saw a more mixed response, with the Shanghai Composite slipping 0.19%. Nevertheless, investor sentiment in the region received a boost from China’s plans for significant bond issuances in 2025, hinting at robust fiscal support for the economy.

Market analysts, including Stephen Innes of SPI Asset Management, credited the broader rally to the seasonal "Santa Claus rally," where markets typically perform well in the last five trading days of the year and the first two of the new year. Experts suggest this pattern arises from holiday optimism, portfolio adjustments, and tax-related investment strategies.

European and North American markets, closed for Christmas, had also shown strength earlier in the week. The Dow Jones rose by 0.9% on Christmas Eve, while the S&P 500 gained 1.1%, with technology stocks leading the charge.

Among other key figures, the Hang Seng Index rose 1.1% in its last trading session on Tuesday, reflecting optimism in Hong Kong, while currencies like the euro, pound, and yen made slight moves against the dollar. Crude oil prices edged higher, with Brent crude reaching $73.70 per barrel and West Texas Intermediate trading at $70.24 per barrel.

The holiday season’s positive momentum seems set to carry into the new year, with analysts like London Stockton of Ned Davis Research maintaining optimism for continued gains. However, Thursday's trading was thin, with major corporate and economic updates limited due to the holiday period.

Japanese market dynamics were slightly disrupted by a cyberattack on Japan Airlines, which caused delays and temporarily halted ticket sales. The airline assured that the issue had been isolated and resolved promptly.

The rally underlines the resilience of global markets amidst holiday calm, with Asian equities enjoying a boost from both domestic and international factors.

END/BUS/RH/