February 2025

• Global markets advanced in February as resilient economic growth, easing inflation and strong technology sector earnings supported investor confidence.
• Artificial intelligence and semiconductor-related companies continued driving global equity market performance.
• Central banks maintained cautious guidance while signalling that gradual monetary easing remained likely during the year.
• Bond yields remained relatively contained despite stronger-than-expected economic data.
• Chinese markets stabilised further following continued government stimulus and support measures.
• Commodity prices delivered mixed performance amid steady global demand and ongoing geopolitical uncertainty.

Asia (ex. Japan)

Asian markets outside Japan delivered positive performance during February as semiconductor demand and improving Chinese market sentiment supported investor confidence across the region.

Taiwan and South Korea remained among the strongest-performing markets globally due to sustained artificial intelligence infrastructure investment and robust chip demand.

Europe

European equities advanced during February as easing inflation and stable economic conditions improved expectations for future European Central Bank policy easing.

Financial and industrial sectors performed relatively well despite continued softness in manufacturing activity across parts of the eurozone.

United States

U.S. equities reached additional record highs during February as major technology companies delivered strong earnings and continued benefiting from artificial intelligence-related investment momentum.

Economic activity remained resilient, supporting broader corporate earnings expectations despite markets reducing hopes for rapid Federal Reserve rate cuts.

United Kingdom

UK equities delivered modest gains during February as inflation continued moderating gradually and expectations for Bank of England rate cuts supported financial conditions.

Domestic economic activity remained relatively subdued overall, though lower energy prices and improving consumer confidence provided some support.

Japan

Japanese equities continued performing strongly during February as exporters benefited from global technology demand and relatively competitive currency conditions.

Corporate governance reforms and continued foreign investment inflows remained important drivers of positive market sentiment.

Emerging Markets

Emerging markets advanced during February as stable U.S. yields and improving Chinese economic sentiment supported capital inflows into higher-risk assets.

Technology-oriented Asian markets significantly outperformed due to sustained semiconductor and artificial intelligence-related investment growth.

Commodities

Commodity prices delivered mixed results during February. Oil prices remained relatively stable as geopolitical risks balanced against moderate global demand growth expectations.

Industrial metals strengthened modestly due to improving manufacturing sentiment and technology infrastructure demand, while gold prices remained elevated amid central bank buying and stable financial conditions.