Most Asian stocks were higher on Friday led by sharp gains in South Korean shares, while Chinese stocks reversed some earlier losses amid hopes of fresh stimulus measures from the world’s second-largest economy. Stock markets in Japan were closed and will remain shut through January 6, contributing to softer trading volumes. U.S. stock index futures inched higher in Asian trade on Friday, steadying from a subdued performance at the end of 2024.
The index covered most of the ground it lost this week, and was headed for a weekly gain. Amid an unprecedented political crisis, South Korea announced policy measures on Thursday aimed at attracting foreign investment to stabilize financial markets and stimulate domestic demand. These efforts come as the country grapples with declining consumer confidence and heightened economic uncertainty. South Korean President Yoon Suk Yeol has been impeached and suspended from office, facing charges of insurrection and abuse of power. In the latest updates, authorities entered the Woon’s compound on Friday to carry out an arrest warrant, avoiding protesters gathered outside. Other regional markets took positive cues from a recovery in South Korean shares, given that the country is seen as a major pillar in East Asia's economy.The People’s Bank of China said it will cut interest rates from the current level of 1.5% “at an appropriate time” in 2025, the Financial Times reported on Friday. The central bank had lowered rates in September 2024. Government officials have signaled looser monetary policy in 2025 and have recently doled out a series of stimulus measures to boost its sluggish economy.