Asian shares gain, gold rises on weaker dollar

Asian shares gained, following Wall Street, on Friday post upbeat US economic data as well as easing geopolitical tensions which buoyed investor sentiment.

MSCI's regional stocks gauge increased 0.2% post the US benchmarks advanced for a second consecutive day.

The dollar held its losses after falling the most in a month during the US session. The weak US currency fueled gains for gold, which climbed close to $4,960 an ounce in the spot market. Silver also rose to an all-time high. The yen weakened slightly ahead of the Bank of Japan’s rate decision

Emerging-market assets broadly rallied Thursday in a session marked by rising risk appetite as traders welcomed signs of easing trade tensions between the US and Europe. Investors are pouring cash into emerging-market funds at a record pace as momentum builds for a rotation out of US assets, weakening the dollar.

The rebound in global equities from a slump earlier in the week underscored how markets remained highly sensitive to shifts in geopolitical tone. With AI continuing to fuel gains in heavyweight stocks and US-Europe diplomacy easing tensions over Greenland, investors have appeared more willing to re-engage with risk.

The US economy expanded in the third quarter by slightly more than initially reported, supported by stronger exports and smaller drag from inventories. Initial jobless claims steadied at 200,000 last week and personal spending rose at a solid pace in November, underscoring consumer resilience.

Investors will be keeping tabs on PMI data in the US later on Friday for fresh clues on the health of the world’s largest economy. Traders are also paying attention to leadership changes at the Federal Reserve as President Donald Trump said he will soon reveal a successor to Chair Jerome Powell.

In Asia, the focus will be on the rate decision by the BOJ, which comes after a meltdown in the bond market earlier this week.

Markets also found support from geopolitical developments. NATO’s secretary general said a breakthrough over Greenland centers on Arctic security, not sovereignty, in talks with Trump.

Separately, European lawmakers are set to vote on ratifying a trade deal with the US, following Trump’s reversal on tariff threats with Greenland’s prime minister signaling openness to expanding defense cooperation, including a permanent NATO mission.

With inputs from Bloomberg

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