Asian shares trade higher ahead of Lunar New Year holidays and gold prices fall

Asian markets showed gains ahead of the Lunar New Year holidays, with major indices in Japan, China, and South Korea rising as investors remained optimistic despite regional economic uncertainties. The positive trading session occurred in the final week before the extended holiday period that typically begins in late January or early February, with market participants positioning their portfolios before the traditional break. The Japanese Nikkei 225 advanced 1.2%, boosted by technology and export-oriented stocks, while China's Shanghai Composite Index gained 0.8% as government measures to support the property sector showed early signs of effectiveness. South Korea's Kospi index rose 0.9%, led by gains in semiconductor manufacturers amid favorable industry forecasts. Regional trading volumes were slightly lower than usual as many institutional investors began reducing positions ahead of the holidays, but the overall sentiment remained positive. Market analysts attributed the gains to several factors including improved manufacturing data from the region and better-than-expected corporate earnings reports from major Asian companies. The absence of major economic data releases during the holiday-shortened week allowed markets to focus on corporate fundamentals rather than macroeconomic indicators.