December 2025

• Global markets ended 2025 strongly as easing monetary policy, resilient economic growth and continued technology sector momentum supported investor confidence.
• Artificial intelligence and semiconductor-related industries remained dominant drivers of global equity market gains throughout the year.
• Central banks across major economies continued gradually lowering interest rates as inflation stabilised near long-term targets.
• Bond yields declined modestly during the final weeks of the year, supporting broader financial conditions.
• Chinese economic activity stabilised further following extensive fiscal and monetary support measures.
• Commodity prices delivered mixed performance amid balanced global demand and geopolitical uncertainty.

Asia (ex. Japan)

Asian markets outside Japan advanced during December as improving Chinese economic conditions and continued semiconductor demand supported investor sentiment across the region.

Taiwan and South Korea remained among the strongest-performing markets globally due to sustained artificial intelligence infrastructure investment and strong chip demand, while Chinese equities benefited from improving credit and consumer conditions.

Europe

European equities delivered positive performance during December as easing monetary policy and stabilising inflation supported financial conditions heading into 2026.

Although industrial activity remained relatively subdued in parts of Europe, lower borrowing costs and improving consumer confidence supported broader market sentiment.

United States

U.S. equities reached further record highs during December as strong technology earnings and continued artificial intelligence investment momentum supported market leadership.

Investors remained optimistic regarding the broader economic outlook as lower interest rates, resilient employment conditions and stable inflation supported corporate earnings growth.

United Kingdom

UK equities advanced during December as easing inflation and lower borrowing costs improved investor confidence and domestic financial conditions.

Consumer-focused sectors benefited from improving household conditions, while expectations for additional Bank of England easing supported broader market sentiment.

Japan

Japanese equities remained strong during December as exporters, semiconductor-related firms and industrial companies continued benefiting from resilient global technology demand.

Foreign investor inflows and ongoing corporate governance reforms remained important long-term supportive factors for Japanese markets.

Emerging Markets

Emerging markets delivered positive performance during December as improving global liquidity conditions and stabilising Chinese growth supported investor appetite for higher-risk assets.

Technology-oriented Asian economies remained key outperformers due to sustained semiconductor and artificial intelligence-related investment demand.

Commodities

Commodity prices delivered mixed performance during December. Oil prices remained relatively stable as moderate global demand balanced geopolitical risks and managed supply conditions.

Industrial metals remained supported by infrastructure and technology investment demand, while gold prices stayed elevated due to continued central bank buying, lower global interest rates and geopolitical uncertainty.