Asian stocks advanced on Monday, led by AI-related shares at the start of the first full trading week of the year, as investors looked past geopolitical developments ahead of a busy week of economic data. Japan's Nikkei jumped more than 3.3 per cent to near record levels as markets reopened after the New Year, supported by signs that manufacturing activity stabilised in December. South Korea's Kospi and Taiwan's main index climbed more than 3 per cent each to fresh highs, underpinned by strong demand linked to artificial intelligence investment, particularly benefiting Taiwan's technology sector. Chinese markets were more subdued, with Hong Kong shares remaining flat as losses in energy stocks weighed, while Australian equities changed little. US equities ended the first trading day of 2026 mixed, with the Dow rising about 0.7 per cent, the S&P 500 adding 0.2 per cent and the Nasdaq broadly flat. In early European trade, regional futures pointed higher across major indices. The US dollar index rose 0.2 per cent, extending its winning streak to a sixth session, while the dollar strengthened against the yen to a two-week high after comments from the Bank of Japan signalled further rate increases if economic conditions evolve as expected. Bitcoin rose 1.3 per cent to $92,393.99, with ether also posting modest gains. Attribution: Reuters
