Shares are higher in Asia in an upbeat start to the new year

BANGKOK — Asian markets began the new year Friday with gains, while U.S. futures and oil prices also advanced.

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

E-commerce giant Alibaba climbed 3.2% and search engine and technology company Baidu jumped 7.5% 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% to 4,277.94, while the S&P/ASX 200 in Australia edged 0.2% higher, to 8,727.30.

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

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 centers and other infrastructure.

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

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

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

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

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

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 Labor Department reported that fewer Americans applied for unemployment benefits last week with layoffs remaining low despite a weakening labor 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% and Micron Technology lost 2.5%. Both were among the biggest gainers in the S&P 500 this year.

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

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