Asian Shares Rise as Dollar Nears High

Asian shares experienced slight gains in holiday-thinned trading, building on previous week's performance, while the dollar remains near a two-year high, driven by U.S. Treasury yields. With major markets in Hong Kong, Australia, and New Zealand closed for holidays, investors are focused on the Federal Reserve's outlook, particularly after Chair Jerome Powell indicated fewer rate cuts for 2025. This has led traders to price in approximately 35 basis points of easing, resulting in a stable benchmark 10-year yield at around 4.5967%. The dollar is expected to gain over 2% this month, negatively impacting commodities and gold. The Australian and New Zealand dollars fell against the stronger dollar, while the euro and yen also weakened. Analysts anticipate that the Fed will pause at the January meeting to await more economic data before making further decisions on rate cuts.