Turnover was sparse in what is a holiday-shortened week for much of the world but the path of least resistance was higher ahead of delayed data that is forecast to show the US economy had continued to grow strongly in the third quarter.

Median forecasts tip annualized growth of 3.2 percent, due in part to a sharp pullback in imports after a run-up earlier in the year ahead of the introduction of tariffs.

Yet analysts at BofA had some words of caution, noting their measure of investor sentiment had moved into extreme bullish territory at 8.5, often a prelude to a reversal.

"Readings above 8.0 have often preceded pullbacks, with global equities declining a median 2.7 percent over the following two months, with a 63 percent hit rate," they wrote in a note.

"Sentiment data reinforce the cautionary signal: the Fund Manager Survey shows most bullish sentiment in 3-1/2 years, driven by expectations of rate, tariff and tax cuts."

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For now the fear of missing out seemed to be greater and S&P 500 futures added another 0.2 percent, with Nasdaq futures up 0.3 percent.

Japan's Nikkei climbed 1.5 percent, extending Friday's bounce as a steep decline in the yen promised to boost export earnings for Japanese corporates.

The yen selloff came as the Bank of Japan raised rates to a 30-year high of 0.75 percent, putting heavy selling pressure on government debt.

Minutes of the BOJ meeting are due on Wednesday, while the head of the central bank speaks to a Japanese business lobby on Christmas Day.

The yen touched a fresh record trough on the euro at 184.90, and on the Swiss franc at 198.08. The dollar was up at 157.67 yen, though investors were wary of testing the November peak of 157.90 in case that triggered intervention from Tokyo.

Japan's chief currency official duly signaled their concern about one-way moves and warned of appropriate action against an excessive decline.

A break of 158.00 higher would target the 2025 top of 158.88, and then the 2024 high at 161.96. The dollar was otherwise steady on a basket of currencies at 98.725, having gained 0.3 percent on Friday.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.3 percent, while South Korea jumped 1.8 percent on optimism over AI-related earnings.

Analysts at TD Securities noted equity markets recorded their highest weekly inflows on record at US$98 billion last week, led by US equity funds. Chinese equity funds saw their third-largest weekly inflow of 2025, and emerging markets drew their largest inflows since April.

Flows to bonds, however, saw their fourth straight week of slowdown. Yields on Japanese 10-year debt rose another 2.5 basis points to the highest since 1999, while US 10-year yields edged up to 4.157 percent.

Silver was again the star in commodities, reaching a fresh record at $67.48 per ounce and bringing gains for the year to almost 134 percent. Gold was up 0.6 percent on the day at $4,362 an ounce.

Oil prices gained after the US intercepted a Venezuelan oil tanker over the weekend and was pursuing another one in what would be the third such operation in less than two weeks.

Brent crude firmed 0.7 percent to $60.88 a barrel, while US crude rose 0.7 percent to $56.89 per barrel.

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