Stocks began 2026 on a positive note in holiday-thinned trade as investors braced for a year set to test the AI-led rally, usher in a change of guard at the Federal Reserve and potentially more market turbulence under Donald Trump's presidency.

In Hong Kong, the Hang Seng Index gained 86 points, or 0.34 percent, to open the first trading day of the new year at 25,717.

The gains soon raced past 1.8 percent while the Hang Seng Tech Index, which represents the 30 largest technology companies listed, was up 3.3 percent shortly after the opening and the Hang Seng China Enterprises Index jumped over 1.9 percent.

Generally, however, moves across asset classes were muted, with momentum in early trade carrying over from a year-end rally while liquidity remained low due to the holidays.

Markets in China and Japan were closed while others returned from the New Year festivities.

Precious metals extended their stellar run from last year, with spot gold up 0.9 percent to US$4,351 an ounce, while spot silver jumped two percent to US$72.63 per ounce.

Gold's 2025 rise was its biggest in 46 years, while silver and platinum made their largest gains on record, driven by a cocktail of factors including the US Federal Reserve's rate cuts, geopolitical flashpoints, robust central bank buying and ETF inflows.

Vishnu Varathan, Mizuho's head of macro research for Asia ex-Japan, ⁠said the rally also underscores "hedges against entrenching USD debasement risks".

Elsewhere, the MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.66 percent (Reuters/Xinhua)