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Asia Stocks Nudge Higher as Dollar Starts 2026 Soft and Metals Rebound

Attention shifts to upcoming U.S. jobs data and the Fed chair nomination to clarify the 2026 rate path.

Overview

  • Reuters reports the dollar index near 98.24 after a 9.4% slide in 2025, with the yen hovering close to intervention-sensitive levels in thin Asia trade as Japan and China remain shut.
  • Spot gold rose roughly 0.7%–0.9% near $4,352 and silver gained about 1.7%–2% around $72.6, extending last year’s outsized advances.
  • Equities opened cautiously positive in the region, with MSCI Asia Pacific up around 0.5%–0.7%, Hong Kong’s Hang Seng up about 1%–2% and U.S. equity futures higher, led by technology shares.
  • Market pricing shows only about a 15%–16% chance of a 25 bps Fed cut in late January, after FOMC minutes were read neutral-to-slightly hawkish and recent U.S. data offered episodic dollar support.
  • Focus remains on President Trump’s choice to replace Jerome Powell as Fed chair, with concerns about central bank independence cited as a factor pressuring the greenback.