South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
USDA $12 Billion Farm Aid Program Draws Mixed Reactions from Row Crop Farmers 
Asian Stock Markets Start New Year Higher as Tech and AI Shares Drive Gains 
Federal Reserve Begins Treasury Bill Purchases to Stabilize Reserves and Money Markets 
Asia Manufacturing PMI Rebounds as Exports and Tech Demand Drive Growth into 2026 
U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom 
South Korea Exports Hit Record High as Global Trade Momentum Builds 
Japanese Business Leaders Urge Government Action as Weak Yen Strains Economy 
South Korean Won Slides Despite Government Efforts to Stabilize Currency Markets 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 
Singapore GDP Growth Surges in 2025 but Outlook Remains Cautious Amid Global Trade Risks 
Oil Prices Slide in 2025 as Oversupply and Geopolitical Risks Shape Market Outlook 
Oil Prices Stabilize at Start of 2026 as OPEC+ Policy and Geopolitical Risks Shape Market Outlook 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry 
Asian stock markets mostly advanced on Wednesday, driven by strong gains in technology and AI-related shares as investors positioned ahead of key U.S. megacap earnings and the Federal Reserve’s highly anticipated interest rate decision. Positive sentiment from Wall Street, where the S&P 500 touched fresh record highs and the Nasdaq extended recent gains, provided a supportive backdrop for regional equities.
Investor confidence was boosted by continued optimism around corporate earnings and sustained demand linked to artificial intelligence. U.S. stock index futures traded higher during Asian hours, with Nasdaq futures climbing around 0.6%, signaling expectations of further strength in technology stocks. Markets are closely watching earnings from Microsoft, Meta Platforms, and Tesla later in the day, while Apple is scheduled to report results on Thursday. These reports are expected to offer important insights into AI-driven revenue growth, cloud demand, and capital expenditure trends.
In Asia, South Korea and Hong Kong led regional gains. South Korea’s KOSPI surged as much as 2%, supported by strong moves in heavyweight semiconductor stocks, with Samsung Electronics rising 1.5% and SK Hynix jumping about 5%. Hong Kong’s Hang Seng Index climbed 2.4%, while the Hang Seng TECH Index added 1.5%, reflecting renewed interest in technology and internet-related shares. Mainland Chinese markets also edged higher, with the CSI 300 and Shanghai Composite Index both gaining around 0.5%.
Elsewhere, futures linked to India’s Nifty 50 rose approximately 0.3%, indicating a positive open. However, not all markets participated in the rally. Singapore’s Straits Times Index slipped 0.5%, while Australia’s S&P/ASX 200 edged down 0.2%. Japanese stocks underperformed, with the Nikkei 225 falling 0.6% and TOPIX declining 1%, pressured by a stronger yen near three-month highs. The firm yen has fueled concerns over export competitiveness and overseas profit translation, although losses were capped by gains in AI-linked stocks such as Renesas Electronics and SoftBank.
Market attention now turns to the Federal Reserve, which is widely expected to keep interest rates unchanged. Traders will closely analyze the policy statement and Chair Jerome Powell’s comments for clues on potential rate cuts later this year, which could shape risk appetite, currency movements, and Asian stock market trends in the weeks ahead.
