People stand outside a store at Pitt Street Mall in Sydney, New South Wales, Australia, on Boxing Day.
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Stocks in the Asia-Pacific region were mostly higher on Thursday, with many markets remaining closed for Christmas.
Japan Nikki 225 The Topix index rose 1.08%, while the Topix index added 1.07%, a day after a report said the country was preparing a record budget of $735 billion for the fiscal year that begins in April. A draft reviewed by Reuters revealed that the budget would cover increased social security expenditures and debt service.
In addition, Bank of Japan Governor Kazuo Ueda said on Wednesday that “the Japanese economy will approach a sustainable and stable inflation rate of 2% (in 2025), accompanied by a wage increase.”
The yield on 10-year Japanese government bonds rose 1.3 basis points to 1.078%, while the yen rose to 157.16 against the dollar on Thursday, indicating that the market expects the bank to raise interest rates.
Shares of Japanese automakers Nissan and Honda traded at an increase of 5.09% and 4.15%, respectively. The two companies began formal merger negotiations at the beginning of the week, which could lead to the creation of the world's third-largest automaker by sales.
South Korea Cosby The KOSDAC index fell by 0.41%, while the KOSDAQ index lost 0.71%. China's CSI 300 index rose 0.12%.
Singapore's manufacturing output rose 8.5% in November from a year earlier, supported by a strong performance in the electronics sector, marking the fifth consecutive month of growth. But the reading was lower than Reuters' expectations of 10% growth. On a seasonally adjusted monthly basis, the country's manufacturing output contracted by 0.4%, compared with a Reuters forecast of an expansion of 0.8%.
Australia, New Zealand and Hong Kong markets were closed for the Christmas holiday.
Traders in Asia will look forward to November manufacturing production data out of Singapore later in the day.
The Chinese government announced on Wednesday that efforts to stabilize and halt the decline in China's real estate market will continue in 2025. The measures will include controlling the supply of commercial housing to improve supply.
Overnight in the United States, markets were closed for Christmas. Stocks jumped Tuesday on Christmas Eve as the market reversed back-to-back gains over the holiday week.
The Standard & Poor's 500 Index added 1.1% to 6,040.04 points, and the Dow Jones Industrial Average gained 390.08 points, or 0.91%, to 43,297.03 points. The Nasdaq Composite Index rose 1.35% to 20,031.13 points, supported by a 7.4% jump in Tesla shares.
Tuesday marked the start of the seasonal Santa Claus rally, which occurs in the last five trading days of the year and the first two days in January.
CNBC's Yun Li and Sean Conlon contributed to this story.
