Asia Markets Climb Amid Holiday Trading and Tourism Boost

Asian shares rose in post-Christmas trading, led by Japan's Nikkei 225, buoyed by retail and tourism stocks after easing visa rules for Chinese tourists. China and Japan discussed security issues, while South Korea's Kospi slipped slightly. U.S. stocks enjoyed a 'Santa rally' amid trading holiday closures.

In a week of thin post-Christmas trading, Asian markets largely experienced gains, spearheaded by Japan's Nikkei 225, which increased by 0.8% to reach 39,449.55. The rise was primarily due to strong performances in retail and tourism stocks following Japan's decision to ease visa restrictions for Chinese tourists.

Japan and China engaged in discussions to address security issues and other bilateral concerns during a diplomatic visit by Japanese Foreign Minister Takeshi Iwaya. This development marks a significant step in addressing long-standing points of tension between the two countries.

In other market movements, South Korea's Kospi saw a minor decline of less than 0.1%, while Taiwan's Taiex index and the Shanghai Composite index both experienced slight gains. U.S. markets were closed for the holiday, but post-holiday trading saw tech stocks contribute to a 'Santa rally', with the S&P 500 and Nasdaq reaching new heights.

(With inputs from agencies.)