HONG KONG - Asian equities were mixed on Monday in quiet post-Christmas trading as investors look ahead to the release of minutes from the Federal Reserve's policy meeting this month, while precious metals retreated from record highs.
Markets looked set to end the last few days of the year on a positive note, helped by hopes for more US interest rate cuts and optimism that the tech-led rally still has more legs.
While the US central bank lowered borrowing costs earlier in December as expected, it also indicated it could stand pat when decision-makers gather again at the end of next month, with two voting against any move and one calling for a bigger reduction.
The minutes from the meeting are due to be released on Tuesday and traders will be poring over their contents for any indication about its plans for 2026.
The prospect of cuts has helped push world markets ever higher this year, offsetting niggling worries about stretched valuations in the tech sector.
On Monday, shares in Hong Kong, Tokyo, Sydney, Wellington, Mumbai and Bangkok slipped while those in Singapore, Seoul, Taipei and Manila edged up. Shanghai was marginally higher.
On commodities markets, gold and silver slipped after hitting new records in recent days.
The precious metals have also enjoyed strong buying, with gold and silver both hitting record highs on expectations for more rate cuts, which makes them more desirable to investors.
Their status as a safe haven asset in times of turmoil has also added to their allure amid geopolitical upheaval with US strikes in Nigeria and a blockade of Venezuelan oil tankers.