January 2025

• Global markets began 2025 positively as easing inflation trends and expectations for continued monetary easing supported investor sentiment.
• Technology and artificial intelligence-related sectors remained dominant market leaders globally.
• Bond yields remained relatively stable as investors anticipated gradual interest rate reductions during the year.
• Economic growth across major developed economies remained resilient despite elevated borrowing costs.
• Chinese authorities continued implementing measures aimed at stabilising economic growth and property markets.
• Commodity prices delivered mixed performance amid balanced global demand and geopolitical risks.

Asia (ex. Japan)

Asian markets outside Japan advanced during January as strong semiconductor demand and improving global financial conditions supported regional investor sentiment.

Taiwan and South Korea remained key outperformers due to continued artificial intelligence infrastructure investment, while Chinese markets stabilised modestly following further government support initiatives.

Europe

European equities delivered positive performance during January as easing inflation and improving expectations for European Central Bank policy easing supported financial conditions.

Corporate earnings remained relatively resilient despite subdued industrial activity, while lower energy prices continued easing pressure on households and businesses.

United States

U.S. equities reached further highs during January as strong technology earnings and ongoing artificial intelligence investment enthusiasm continued supporting major indices.

Economic data remained resilient overall, leading investors to anticipate gradual rather than aggressive Federal Reserve interest rate cuts during the year ahead.

United Kingdom

UK equities advanced modestly during January as moderating inflation and expectations for additional Bank of England policy easing improved investor confidence.

Domestic economic growth remained relatively subdued, though financial conditions continued improving gradually.

Japan

Japanese equities remained strong during January as technology demand, exporter strength and continued corporate governance reforms attracted sustained investor inflows.

The Bank of Japan maintained broadly accommodative conditions despite ongoing speculation regarding future gradual policy normalisation.

Emerging Markets

Emerging markets delivered positive performance during January as improving global liquidity conditions and stable U.S. bond yields supported investor appetite for higher-risk assets.

Technology-oriented Asian economies remained among the strongest performers globally due to continued semiconductor investment demand.

Commodities

Commodity prices delivered mixed performance during January. Oil prices remained relatively stable amid balanced supply conditions and moderate global demand growth.

Industrial metals remained supported by artificial intelligence infrastructure demand and improving manufacturing sentiment, while gold prices stayed elevated due to central bank demand and expectations for lower future interest rates.