Asia-Pacific markets opened higher on Friday as U.S. stocks ended lower in the first trading session of 2025, weighed down by technology stocks.

The People’s Bank of China reportedly plans to cut interest rates “at an appropriate time” this year, the Financial Times reported, citing comments from the central bank. The country’s 7-day reverse repo rate is currently 1.5%.

Separately, China’s Ministry of Commerce plans to impose export restrictions on certain technologies for producing battery components and processing critical minerals such as lithium and gallium, it said in a statement on Thursday.

Investors in Asia will continue to assess political uncertainty in South Korea as the country’s corruption watchdog seeks to execute an arrest warrant for indicted President Yoon Suk Yeol, according to local media Yonhap News. Yoon’s short-lived attempt at martial law on December 3 has led to political unrest in the country.

South Korea Kospi index rose 1.03% and the small-cap Kosdaq rose 1.1%.

Australia’s S&P/ASX 200 rose 0.18% at the open.

Hong Kong Hang Seng Index Futures indicated a lower opening value, sitting at 19,610, lower than the index’s last close of 19,623.32.

Japanese markets remain closed for a public holiday.

The three major U.S. indexes ended the first trading session of the new year in the red, extending weakness into year-end 2024, suggesting markets may not see a “Santa Claus rally” this year.

Investors were hoping for a “Santa Claus rally” that would span the last five trading days of a year and the first two trading days of the following January. During that span, the S&P 500 gained an average of 1.3% while finishing higher nearly 80% of the time, Dow Jones market data dating back to 1950 shows.

Overnight stay in the USA, the blue chip Dow Jones Industrial Average lost 151.95 points or 0.36% to end at 42,392.27, while the S&P 500 fell 0.22% to 5,868.55 and was tech-heavy Nasdaq Composite lost 0.16% to 19,280.79.

It was the fifth straight session in the red for the S&P 500 and Nasdaq, their longest losing streak since April. Big tech stocks weighed on the market: Apple fell 2.6% and Tesla fell 6% due to lower annual deliveries.

—CNBC’s Jesse Pound and Christina Cheddar Berk contributed to this report.