Well, I live in China and they sort of do. They put up the Christmas decorations almost one and a half months before Christmas, and keep them up until a like three weeks after Chinese new year. The restaraunts also do special Christmas Eve dinners. But Christmas is not a Asian holiday, but they like to pretend it is.
Christmas is a Christian festival, so Christians in any part of the world would celebrate it. There are many countries in Asia, some of which have substantial Christian communities. Christmas is celebrated in December as a matter of tradition - nobody knows when Jesus Christ was really born.
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