HONG KONG, Dec 26 — Asian stocks edged higher today amid holiday-thinned trade and with some exchanges closed for Boxing Day, while precious metals extended their year-long rally towards record highs.

Silver reached US$75 (RM303) an ounce for the first time and gold continued to hover around its own record price, with geopolitical risk elevated as US military and economic pressure on Venezuela persists.

Regional markets extended their upward rise after Wall Street saw US shares close at a high this week. Most markets across the world were shuttered yesterday for Christmas.

Tokyo, Shanghai, Seoul and Taipei all rose by closing time today. Markets in Hong Kong, Australia and most of Europe were closed.

Analysts have projected a “Santa Claus rally” — the phenomenon where prices tend to rise during the last five days of December and the first two days of the new year.

The movement came after traders in New York pushed the S&P 500 to an all-time high before the Christmas break in response to figures showing the world’s top economy expanded 4.3 per cent in the third quarter.

Today, silver pushed to a record US$75 an ounce and gold remained above US$4,500 an ounce, with US-Venezuela tensions adding to expectations that the Federal Reserve will keep cutting rates next year.

Geopolitical worries have grown as Washington pressures Caracas with a blockade of sanctioned oil vessels sailing to and from Venezuela.

The yen remained relatively steady today but saw a general rebound this week, after Japanese officials said they were prepared to step in to support the currency.

Japan’s government today approved a record ¥122 trillion (3.1 trillion) budget, in part boosting defence spending, as inflation in the country persists. — AFP