Asia stocks rise modestly, volumes thin

Wall Street’s gains were supported by strength in chipmakers and expectations that softer inflation could allow the Federal Reserve more scope to cut interest rates next year, lifting risk appetite across the region.

Market participation, however, was limited as investors trimmed positions and avoided large bets with several Asian markets set to close later in the week for holidays. Year-end trading typically brings lighter volumes, which can exaggerate price moves while keeping overall momentum muted.

China’s Shanghai Composite rose 0.3%, while the Shanghai Shenzhen CSI 300 gained 0.6%. Hong Kong’s Hang Seng index edged up 0.4%.

South Korea’s KOSPI added 0.4%, while Singapore’s Straits Times Index ticked 0.3% higher.

Futures tied to India’s Nifty 50 ticked up 0.1%.

RBA minutes, Japan FX intervention in focus

In Australia, the S&P/ASX 200 jumped over 1%, with miners leading the charge on higher commodity prices.

Minutes from the Reserve Bank of Australia’s latest policy meeting showed policymakers had discussed the possibility that interest rates may need to rise in 2026 if inflation proves more persistent than expected. The minutes highlighted the central bank’s continued focus on price stability, even as markets had been leaning toward a more dovish outlook.