Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
US Stock Futures Slip After Wall Street Rally Fueled by US-Iran Deal and Chipmaker Surge 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
Trump Says No Hormuz Strait Tolls During 60-Day Iran Ceasefire 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Gold Prices Slide as Hawkish Fed and Strong Dollar Weigh on Bullion 
German Auto Suppliers Turn Bearish as Investment and Jobs Shift Overseas 
Asian Currencies Steady as Dollar Holds Firm Ahead of Fed Decision and US-Iran Deal Details 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
Asian stock markets moved mostly sideways on Monday as thin year-end trading volumes and reduced investor participation kept activity muted across the region. With many global investors already having completed year-end positioning, markets lacked strong catalysts, resulting in tight trading ranges despite generally positive sentiment around global monetary policy easing.
Investor confidence was supported by expectations that the U.S. Federal Reserve could continue cutting interest rates into 2026 following its recent policy move. Lower interest rate forecasts have helped underpin risk appetite globally, particularly benefiting equities in emerging markets and interest rate–sensitive sectors. However, caution prevailed in Asia as traders awaited clearer signals on global growth and policy direction heading into the new year.
U.S. markets offered limited direction. Wall Street indices closed marginally lower on Friday, though optimism around a potential “Santa Claus rally” remained intact. Meanwhile, U.S. stock index futures traded largely flat during Asian hours, reinforcing the subdued regional mood.
South Korea stood out as a notable outperformer. The benchmark KOSPI index surged 1.7%, driven by strong gains in heavyweight technology stocks. Chipmaker SK Hynix jumped nearly 6% after being removed from an investment warning list, boosting confidence in the semiconductor sector. Samsung Electronics also advanced around 1.5%, adding further support to the index.
Elsewhere in Asia, movements were modest. Japan’s Nikkei 225 slipped 0.3%, while the broader TOPIX edged up 0.1%. China’s Shanghai Composite gained 0.3%, reflecting cautious optimism, while Hong Kong’s Hang Seng index rose 0.4%. Singapore’s Straits Times Index remained largely flat, India’s Nifty 50 was little changed, and Australia’s S&P/ASX 200 declined 0.3%.
As Asia approaches 2026, investors are increasingly focused on how U.S. interest rate cuts, global economic growth trends, and regional policy developments will shape market performance. While near-term trading remains quiet, expectations of easier monetary conditions continue to provide a supportive backdrop for Asian equities.
