Japanese equities were primed to rise after fresh weakness in the yen, following a lackluster day on Wall Street that saw muted moves in stocks and government bonds.

Equity futures for Japan pointed to gains of 0.5% in early trading after the yen declined to a five-month low of 158 per dollar in the previous session. Bank of Japan Governor Kazuo Ueda made comments in a speech Wednesday that avoided giving a clear signal that he might raise interest rates next month.

Traders will be looking for further clues when the central bank releases its summary of opinions for its December meeting later Thursday. Tokyo inflation data and Japan unemployment may also impact yen trading during the session.

In other markets, Australia and Hong Kong stocks resume trading Friday after a two-day break for Christmas holidays. Australia and New Zealand bond yields edged lower in early hours.

The S&P 500 ended Thursday flat, while the tech-heavy Nasdaq 100 fell 0.1% in quiet post-holiday session as mixed jobless claims data did little to alter bets on the Federal Reserve outlook. Major European markets were closed Thursday. An index of the dollar rose 0.1% as it heads for its best year since 2015.

US megacaps struggled during the session, though Apple Inc. outperformed after a bullish note from Wedbush. GameStop Corp. rallied after an X post from Keith Gill, the online persona known as Roaring Kitty.

Recurring applications for US unemployment benefits rose to the highest in more than three years, adding to signs that it’s taking longer for out-of-work people to find a job. Initial claims, meanwhile, ticked down to 219,000 in the week ended Dec. 21.

“Eco data is a non-event until we move into the new year,” said Kenny Polcari at SlateStone Wealth. “Christmas is behind us, but the New Year is ahead of us. Volumes will remain muted.”

The yield on 10-year Treasuries dropped one basis point to 4.58% on Thursday. Bitcoin sank as traders reduced their risk exposure after a record-breaking run.

To Jonathan Krinsky at BTIG, the market can continue to make upside progress into year-end, hitting a fresh all-time high for the S&P 500 above 6,100. Looking ahead to January, however, he thinks think volatility will re-emerge.

“If the S&P 500 does make new highs, there are going to be massive divergences in breadth and momentum, which is another red flag as we get into January,” he noted.

In Asia, South Korea’s business confidence deteriorated the most since the global outbreak of Covid-19, reflecting mounting concerns about an economy grappling with political turmoil and facing Donald Trump’s tariff threats.

Meanwhile, Alibaba Group Holding Ltd. agreed to merge its South Korean operations with E-Mart Inc.’s e-commerce platform to better compete in the country’s fast-paced online retail sector.

Japan Airlines Co. said it has resumed ticket sales after a cyberattack on Thursday morning.

Data set for release in Asia includes industrial profits for China and trade data for Thailand. Also in South Korea, a preliminary court hearing will be held on the impeachment of President Yoon.

In commodities, gold rose Thursday to a one-week high while West Texas Intermediate crude fell to trade under $70 per barrel.

  - Bloomberg