Asia-Pacific stocks mostly rose Thursday, with several markets remaining closed for Boxing Day.

Japan’s Nikkei 225 rose 0.44%, while the Topix added 0.49%, a day after a report said the country was preparing a record $735 billion budget for its fiscal year starting in April. The budget will account for increased social security and debt-servicing expenses, a draft reviewed by Reuters revealed.

Additionally on Wednesday, Bank of Japan’s Governor Kazuo Ueda said that “Japan’s economy will move closer to sustainable and stable 2 percent inflation [in 2025], accompanied by wage increases.”

The 10-year Japan government bond yield rose 1.3 basis points to 1.078%, while the yen strengthened to 157.16 against the dollar on Thursday, signaling the market expects the bank could undertake interest rate hikes.

Shares of Japanese automakers Nissan and Honda traded higher 5.09% and 4.15% respectively. Both companies had begun official negotiations to merge at the start of the week, which could create the world’s third-largest carmaker by sales.

South Korea’s Kospi inched up 0.12% while the Kosdaq rose 0.48%. China’s CSI 300 was down 0.11%.

Australia, New Zealand and Hong Kong markets were closed for the Boxing Day holiday.

Traders in Asia will be looking at November manufacturing output data coming out of Singapore later in the day.

Efforts to stabilize and stem the declines of China’s real estate market will persist in 2025, China’s government announced Wednesday. The measures will include controlling the supply of commercial housing to optimize supply.

Overnight in the U.S., markets were closed for Christmas. Stocks jumped Tuesday on Christmas Eve as the market pulled off back-to-back gains in the holiday week.

The S&P 500 added 1.1% to 6,040.04, and the Dow Jones Industrial Average gained 390.08 points, or 0.91%, to 43,297.03. The Nasdaq Composite climbed 1.35% to 20,031.13, helped by a 7.4% jump in Tesla shares.

Tuesday marked the start of the seasonal Santa Claus rally, which happens in the last five trading days of the year and the first two in January. 

— CNBC’s Yun Li and Sean Conlon contributed to this story.