Markets Soar Amid Thin Holiday Trading and Fed's Stance

Asia shares rose amidst holiday-thinned trading, taking cues from Wall Street, despite a strong dollar impacting commodities. Investors focus on the Federal Reserve's rate outlook, with markets predicting fewer rate cuts. Global stocks prepare to end the year strongly, while geopolitical tensions and economic challenges persist.

Asian markets experienced modest growth in holiday-reduced trading, following a trend of increases earlier in the week. Despite a scarcity of data or news, shares rose, while the U.S. dollar maintained its position near a two-year high. Investors are chiefly attentive to the Federal Reserve's future interest rate strategy.

Markets showed resilience as traders adjusted expectations following Fed Chair Jerome Powell's indication of fewer rate cuts in the upcoming year. Consequently, U.S. Treasury yields and the dollar have climbed, posing challenges for commodities like gold. Treasury yields remained steady with the benchmark 10-year yield at 4.5967%.

Global stock markets seem poised to conclude the year on a high note, with a forecasted annual increase of over 17%. U.S. markets have significantly contributed to this strength, bolstered by artificial intelligence advancements and enduring economic growth, despite various geopolitical and economic issues worldwide.

(With inputs from agencies.)