Stocks had a bumper 2025, with the S&P adding 16.4%, the tech-rich Nasdaq 20.4% and London’s FTSE enjoying its merriest Christmas in 16 years.
In Asia, Seoul stocks whooshed 75%, while Hong Kong’s Hang Seng Index bounced 28% and Tokyo’s Nikkei 225 rocketed more than 26%.
“Naturally, the start of the new year comes with the question everyone asks moving from one year to the next: will this continue? The consensus is that, yes, it will,” said Kyle Rodda at Australian brokerage Capital.com.
“When it comes to the all important US economy, Wall Street is pricing in growth will accelerate this year while inflation still moderates and interest rates get cut. Meanwhile, analysts predict that corporate fundamentals will improve,” Rodda said.
Hong Kong led Asian gains on Friday, climbing 2.8% with chip designer Biren Technologies soaring as much as 119% in the exchange’s first listing of the year. It closed at HK$34.46, off its intra-day high of HK$42.88 but well up on its offer price of HK$19.60.
The Shanghai-based firm’s listing raised more than US$700 million, suggesting that investor appetite for anything related to artificial intelligence remains insatiable.
Biren “enjoys scarcity value and high market attention”, said Kenny Ng, a strategist at China Everbright Securities.
“The industry is in a flourishing stage, with many firms striving for breakthroughs and significant growth potential,” Ng said.
Search-engine giant Baidu jumped more than 9% after saying its AI chip unit Kunlunxin had filed a listing application in Hong Kong.
Taipei, Sydney, Singapore, Bangkok, Jakarta and Manila also advanced while Seoul’s Kospi, which soared 76% in 2025 in large part due to the AI boom, rose 2.3%.
Samsung Electronics added 7% after co-CEO Jun Young Hyun said customers had praised its high-bandwidth memory (HBM) chips, saying that “Samsung is back”, Bloomberg News reported.
Europe joined the rally, with London, Paris and Frankfurt all higher in early trade.
After volatile recent days following record highs for silver, precious metals started the new year on a bright note with gold up 0.64% per ounce and silver 1.5% shinier.