South Korea Factory Activity Returns to Growth in December on Export Rebound 
Singapore GDP Growth Surges in 2025 but Outlook Remains Cautious Amid Global Trade Risks 
Oil Prices Stabilize at Start of 2026 as OPEC+ Policy and Geopolitical Risks Shape Market Outlook 
Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
Citi Forecasts a Volatile but Ongoing Bull Market for S&P 500 in 2026 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
Asian Markets End Year on AI Optimism as Precious Metals and Currencies Shine 
Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment 
Asia Manufacturing PMI Rebounds as Exports and Tech Demand Drive Growth into 2026 
USDA $12 Billion Farm Aid Program Draws Mixed Reactions from Row Crop Farmers 
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 
U.S. Stocks Slip as Gold Rebounds Ahead of Year-End, Markets Eye 2026 Outlook 
Trump Delays Tariff Increases on Furniture and Cabinets for One More Year 
Wall Street Ends Mixed as Tech and Financial Stocks Weigh on Markets Amid Thin Holiday Trading 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
Asia’s stock markets dropped sharply Wednesday, following Wall Street’s sell-off, as Iran’s ballistic missile strike on Israel stoked fears of a broader regional conflict. Crude oil prices surged amid concerns of supply disruptions, prompting investors to flock to safe-haven assets like bonds and gold.
U.S. Treasury yields declined during Asian trading hours, with gold hovering near its all-time high. The U.S. dollar strengthened to its highest point in three weeks against the euro, bolstered by a resilient American job market that may reduce the likelihood of a Federal Reserve interest rate cut in November. Conversely, declining inflation trends in the eurozone indicate a possible easing from the European Central Bank later this month.
Market Reaction Across Asia
Japan’s Nikkei fell 1.5%, while South Korea’s KOSPI shed 1.3%, and Australia’s benchmark index slipped 0.3%. The MSCI’s broad Asia-Pacific index dipped 0.5%. Hong Kong’s Hang Seng remained closed after a holiday, and mainland Chinese markets stayed shut for the week-long Golden Week holiday. Trading in Taiwan was suspended due to a typhoon.
U.S. S&P 500 futures dropped 0.16%, following a 0.9% loss in the previous session.
“Geopolitics often outweighs economic indicators, corporate earnings, or central bank policies when it comes to market volatility,” said Chris Weston, head of research at Pepperstone. “While markets often stabilize, these geopolitical risks are significant, and any shift in rhetoric from Israel or Iran could notably affect sentiment.”
Iran-Israel Tensions and Oil Price Surge
Iran stated its missile attacks were complete unless further provoked, while Israel and the U.S. promised retaliation. Brent crude rose over 1% to $74.33 per barrel, adding to Tuesday’s 2.5% jump. U.S. WTI futures climbed 1.3% to $70.73 per barrel after a 2.4% rally. Gold dipped 0.16% to $2,658.63 per ounce, following a 1% surge in the previous session that nearly reached last month's record of $2,685.42.
U.S. Dollar and Global Economic Indicators
Benchmark 10-year Treasury yields edged down 1.5 basis points to 3.7278%. The dollar index held steady at 101.21, its highest level since mid-September. Euro area data showed inflation dropping below the ECB’s 2% target, while U.S. figures highlighted economic resilience. Private payroll data is due later Wednesday, ahead of key non-farm payroll numbers expected on Friday.
