The Japan Times - Asian markets mostly up after US growth fuels Wall St record

Markets looked set to go into the Christmas break on a broadly positive note amid optimism for 2026, which has offset recent worries about stretched tech valuations and rising tensions between the United States and Venezuela.

Traders in New York pushed the S&P 500 to an all-time high in response to figures showing the world's top economy expanded 4.3 percent in the third quarter, the fastest pace in two years and much quicker than expected.

The report, which was boosted by healthy consumer and business spending, provided some reassurance to investors about the economic outlook after a string of increasingly weakening jobs data.

However, other figures did provide some cause for thought, with a gauge of consumer spending falling for a fifth successive month to its lowest level since February 2021 owing to worries about jobs. A report last showed unemployment at a four-year high.

With the economy appearing to be in better shape than expected, investors pared their bets on another Federal Reserve interest rate cut next month.

And while hopes for lower borrowing costs have been a key driver of the recent market rally, analysts said the strong growth overshadowed any disappointment that they will remain unchanged for now.

"We're set up for a Santa Claus rally," UBP's Kieran Calder told Bloomberg TV. "The market is taking some of the data pretty positively."

Asian markets swung between gains and losses as traders wound down before Christmas.

Tokyo, Hong Kong, Seoul, Wellington and Taipei all rose though Shanghai, Sydney, Singapore and Jakarta edged down.

Gold rallied above $4,500 for the first time to a peak of $4,525.77 per ounce, while silver hit $72.70 an ounce, with US-Venezuela tensions adding to expectations the Fed will keep cutting rates next year.

Geopolitical worries have grown as Washington continues to put pressure on Caracas with a blockade of sanctioned oil vessels sailing to and from Venezuela.

And on Monday, US President Donald Trump said Venezuelan President Nicolas Maduro would be "smart" to step down, as he ramps up military operations and threats.

The yen extended its recent rebound against the dollar after Japan's Finance Minister Satsuki Katayama suggested authorities were prepared to step in to finance markets to support the currency, citing speculative moves in markets.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: UP 0.1 percent at 50,481.42 (break)

Hong Kong - Hang Seng Index: UP 0.2 percent at 25,817.64

Shanghai - Composite: DOWN 0.2 percent at 3,914.15

Dollar/yen: DOWN at 155.62 yen from 156.27 yen on Tuesday

Euro/dollar: UP $1.1807 from $1.1791

Pound/dollar: UP at $1.3532 from $1.3499

Euro/pound: DOWN at 87.26 pence from 87.34 pence

West Texas Intermediate: FLAT at $58.38 per barrel

Brent North Sea Crude: FLAT at $62.38 per barrel

New York - Dow: UP 0.2 percent at 48,442.41 (close)

London - FTSE 100: UP 0.2 percent at 9,889.22 (close)

K.Abe--JT