U.S. Stocks Slip as Gold Rebounds Ahead of Year-End, Markets Eye 2026 Outlook 
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
Asian Stock Markets Start New Year Higher as Tech and AI Shares Drive Gains 
Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment 
Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns 
South Korea Factory Output Misses Forecasts in November Amid Ongoing Economic Uncertainty 
Citi Forecasts a Volatile but Ongoing Bull Market for S&P 500 in 2026 
Trump Delays Tariff Increases on Furniture and Cabinets for One More Year 
U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
Singapore GDP Growth Surges in 2025 but Outlook Remains Cautious Amid Global Trade Risks 
Asia Manufacturing PMI Rebounds as Exports and Tech Demand Drive Growth into 2026 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
South Korea’s economy recorded an unexpected contraction in the final quarter of 2025, marking its sharpest quarterly decline in three years and raising concerns about the country’s near-term growth outlook. According to advanced estimates released by the central bank on Thursday, gross domestic product (GDP) fell 0.3% in the October–December period compared with the previous quarter on a seasonally adjusted basis. This result sharply contrasted with market expectations, as economists surveyed by Reuters had forecast a modest 0.1% expansion.
The contraction followed a strong 1.3% expansion in the third quarter, highlighting the volatility facing Asia’s fourth-largest economy. The fourth-quarter decline was the steepest since the final quarter of 2022, driven largely by weakness in investment-related sectors. Construction investment emerged as the biggest drag on economic growth, plunging 3.9% during the quarter, while facility investment also declined by 1.8%, reflecting subdued business confidence and slower capital spending.
Private consumption provided limited support, rising just 0.3% after a stronger 1.3% increase in the previous quarter that had been boosted by the government’s supplementary budget. External trade also weighed on growth, as exports fell 2.1% and imports dropped 1.7%. As a result, net exports made a negative contribution of 0.2 percentage points to overall GDP, underscoring the impact of weaker global demand.
On a year-on-year basis, South Korea’s GDP grew 1.5% in the fourth quarter, easing from a 1.8% increase in the third quarter and missing economists’ median forecast of 1.9%. For the full year, the economy expanded by 1.0% in 2025, down sharply from 2.0% growth in 2024 and marking the slowest annual expansion since 2020.
The Bank of Korea recently signaled an end to its current easing cycle, opting to keep interest rates unchanged as it prioritizes foreign exchange stability and acknowledges potential upside risks to growth this year. Looking ahead, the central bank projects economic growth of 1.8% in 2026, while the government remains more optimistic, forecasting stronger growth of 2.0% this year despite recent economic headwinds.
