Bangkok, Jan 2 (AP) Asian markets began the new year Friday with gains, while US futures and oil prices also advanced.

Hong Kong's Hang Seng jumped 2.2 per cent to 26,189.79 on a strong rally in tech shares.

E-commerce giant Alibaba climbed 3.2 per cent and search engine and technology company Baidu jumped 7.5 per cent after it said it plans to spin off its artificial intelligence computer chip unit Kunlunxin, which would list shares in Hong Kong early 2027. The plan is subject to regulatory approvals.

Markets were still closed in Tokyo, Shanghai, Thailand and New Zealand.

South Korea's Kospi picked up 1.5 per cent to 4,277.94, while the S&P/ASX 200 in Australia edged 0.2 per cent higher, to 8,727.30.

Taiwan's Taiex was up 1.1 per cent and the Sensex in India added 0.1 per cent.

Asian shares have been supported by expectations that growth in the use of artificial intelligence will spur demand for computer chips and other items needed to build out data centres and other infrastructure.

Recent manufacturing data for much of the region has been relatively weak, though trade has remained resilient.

“Exports from most countries have surged in recent months, and we think the near-term outlook for Asia's export-oriented manufacturing sectors remains favourable,” Shivaan Tandon of Capital Economics said in a report.

The future for the S&P 500 was up 0.5 per cent while that for the Dow Jones Industrial Average added 0.3 per cent.

On Wednesday, US stocks finished 2025 with a fourth day of losses, despite strong gains for the year.

The S&P 500 gave up 0.7 per cent to 6,845.50 and the Dow fell 0.6 per cent to 48,063.29. The Nasdaq composite closed 0.8 per cent lower at 23,241.99.

The S&P 500 set 39 record highs in 2025 and closed 16.4 per cent higher for the year. The Nasdaq gained 20.4 per cent and the Dow finished 13 per cent higher.

Wall Street's 2025 gains came as investors embraced the optimism surrounding artificial intelligence and its potential for boosting profits across almost all sectors. But the market had no shortage of turbulence along the way amid President Donald Trump eventually put his on-again, off-again tariffs on imported goods worldwide on pause while negotiating trade deals, helping to calm frayed nerves.

Strong corporate profits and three cuts to interest rates by the Federal Reserve also helped drive markets higher.

Wall Street is betting that the Fed will hold interest rates steady at its next meeting in January.

The Labour Department reported that fewer Americans applied for unemployment benefits last week with layoffs remaining low despite a weakening labour market.

All of the sectors in the S&P 500 closed in the red Wednesday, with technology stocks the biggest drag on the market. Western Digital fell 2.2 per cent and Micron Technology lost 2.5 per cent. Both were among the biggest gainers in the S&P 500 this year.

In other dealings early Friday, silver gained 3.5 per cent after giving back 9.4 per cent on Wednesday. It gained more than 140 per cent in 2025.

Gold picked up 1.1 per cent. It closed out the year with a 63.7 per cent gain.

US benchmark crude gained 35 cents to USD 57.77 per barrel. The price of Brent crude, the international standard, was up 35 cents at USD 61.20 per barrel.

The US dollar rose to 156.80 Japanese yen from 156.75 yen. The euro climbed to USD 1.1760 from USD 1.1746. (AP) RD RD

Asian markets rise as Alibaba plans a Hong Kong spin-off subject to regulatory approvals and trade pauses affect imports. Alibaba's planned spin-off and Hong Kong listing of its artificial intelligence chip unit is expressly subject to regulatory approvals, while a pause in tariff actions and ongoing trade negotiations operate as regulatory measures affecting imports, export-oriented sectors, and market conditions across the region.