(Dec 30): Asian stocks edged lower after a seven-day winning run, with Tuesday marking the end of the trading year for several of the region’s markets. Silver and gold rose after a slump from fresh all-time highs.
MSCI Inc’s gauge of Asia-Pacific shares dropped 0.2% after capping its longest streak of gains since September on Monday. Futures on the S&P 500 Index also edged lower after the US benchmark fell 0.3% on Monday and the Nasdaq 100 slid 0.5%. A gauge of global equities dropped for the first time in eight sessions on Monday, while staying on course for its best year since 2019.
Silver climbed about 2% while continuing to trade volatile. The white metal tumbled 9% in the previous session, a sell-off that followed a historic surge powered by speculative trades and fears of a supply shortage. Gold was up 0.5%.
The weakness in equities “is a reversal from last week when tech stocks led on the way up”, said Joe Mazzola, the head trading and derivatives strategist at Charles Schwab. However, it “doesn’t appear connected to any single fundamental factor”, he said.
Tuesday marks the last trading session of the year for several Asian equity markets, including Japan, South Korea and Thailand.
See also: Global stocks at record highs; silver slides from peak
Meanwhile, some of the region’s strongest currency trends are starting to unravel heading into year end, with the South Korean won and the Thai baht leading the reversals.
The won, which was approaching a threshold last breached during the global financial crisis, has bounced back since the middle of last week as authorities signaled their support for the currency. On the other end of the spectrum, the baht, this year’s second-best performing Asian currency, is ceding ground on fears the central bank may push back against the rally, which threatens the nation’s exports.
Equity outlook
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The MSCI All Country World Index has climbed 21% in 2025, heading for its third straight annual gain. A measure of Asian stocks has rallied more than 25%, with South Korea’s Kospi being the region’s top performer with a 76% surge.
Even as the S&P 500 — up some 17% — has underperformed many global peers, an optimistic consensus is taking hold that US stocks will continue rallying in 2026 after three straight years of gains.
Despite a raft of risks spanning a potential bust in the artificial-intelligence advance to unanticipated policy shocks, sell-side strategists are forecasting another 9% average gain in the S&P 500 next year.
Meantime, US President Donald Trump teased that he has a preferred candidate to be the next chair of the Federal Reserve (Fed), but is in no hurry to make an announcement — while also musing that he might fire the central bank’s current leader, Jerome Powell.
Investors were also assessing the outlook for US interest rates and monetary policy. Wall Street interest-rate strategists — with several notable exceptions — expect stable-to-higher Treasury yields in 2026 despite Fed interest-rate cuts.
The Fed is due to release minutes of its December meeting later on Tuesday. The yield on 10-year Treasuries was steady after slipping about two basis points to 4.11% in the previous session.
Elsewhere in markets, bitcoin traded choppy. The cryptocurrency topped US$90,000 ($115,737.75) in the last session before erasing its gain. A gauge of the dollar was steady.
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Corporate news:
- Meta Platforms Inc has agreed to acquire Singapore-based artificial intelligence start-up Manus, which makes an AI agent that it sells to small- and medium-sized businesses.
- Citigroup Inc said it expects to post a roughly US$1.1 billion after-tax loss on the sale of its remaining business in Russia to Renaissance Capital.
- SoftBank Group Corp is in advanced talks to acquire DigitalBridge Group Inc, a private equity firm that invests in assets such as data centres, according to people with knowledge of the matter. DigitalBridge jumped more than 40% in pre-market trading.
- Airbus SE landed orders for dozens of aircraft from two Chinese carriers as the European plane-maker grows its market share in Asia’s biggest economy.
- Origin Energy Ltd said Kraken Technologies Ltd, a software platform that helps utilities manage the transition to cleaner energy, has been valued at US$8.65 billion after the software company’s first stand-alone raising.
- South Korea’s stock market renaissance in 2025 was one for the history books. From world-beating gains in arms exporters to the eye-popping surge in AI and K-beauty shares, investors were rewarded in a market that reached new highs.
Stocks
- S&P 500 futures were little changed as of 10.52am Tokyo time on Tuesday
- Japan’s Topix fell 0.2%
- Australia’s S&P/ASX 200 was little changed
- Hong Kong’s Hang Seng was little changed
- The Shanghai Composite fell 0.3%
- Euro Stoxx 50 futures were little changed
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was unchanged at US$1.1773
- The Japanese yen fell 0.1% to 156.27 per dollar
- The offshore yuan was little changed at 7.0005 per dollar
Cryptocurrencies
- Bitcoin was little changed at US$87,177.79
- Ether was little changed at US$2,932.41
Bonds
- The yield on 10-year Treasuries was little changed at 4.11%
- Australia’s 10-year yield declined two basis points to 4.74%
Commodities
- West Texas Intermediate crude fell 0.3% to US$57.88 a barrel
- Spot gold rose 0.5% to US$4,353.32 an ounce
Uploaded by Tham Yek Lee
