March 2025

• Global markets experienced mixed performance in March as investors balanced resilient economic growth against persistent inflation concerns and uncertainty regarding the timing of future interest rate cuts.
• Technology and artificial intelligence-related sectors continued outperforming despite increased market volatility.
• Bond yields rose modestly following stronger-than-expected economic and labour market data.
• Central banks maintained cautious policy guidance while monitoring inflation trends closely.
• Chinese economic conditions improved gradually following continued policy support measures.
• Commodity prices strengthened modestly amid resilient demand and ongoing geopolitical risks.

Asia (ex. Japan)

Asian markets outside Japan delivered generally positive performance during March as improving Chinese economic data and continued semiconductor demand supported investor confidence.

Taiwan and South Korea remained key outperformers due to sustained artificial intelligence-related technology investment, while Chinese markets benefited from additional government stimulus efforts aimed at stabilising growth.

Europe

European equities delivered mixed performance during March as resilient corporate earnings and easing inflation trends supported sentiment despite continued weakness in manufacturing activity.

Investors increasingly focused on the timing of future European Central Bank rate cuts while monitoring economic growth conditions across major eurozone economies.

United States

U.S. equities experienced increased volatility during March as stronger economic data reduced expectations for rapid Federal Reserve policy easing.

However, major technology companies continued supporting broader market performance through strong earnings growth and ongoing artificial intelligence investment momentum.

United Kingdom

UK equities delivered relatively stable performance during March as moderating inflation and improving consumer confidence supported investor sentiment.

Markets continued anticipating gradual Bank of England policy easing later in the year despite resilient wage growth and sticky service-sector inflation.

Japan

Japanese equities remained strong during March as exporters, semiconductor-related companies and financial sectors benefited from resilient global demand and improving domestic conditions.

The Bank of Japan maintained broadly accommodative monetary settings despite gradually improving inflation and wage growth trends within the Japanese economy.

Emerging Markets

Emerging markets delivered positive performance during March as stabilising global financial conditions and improving Chinese growth expectations supported investor inflows.

Technology-oriented Asian economies remained among the strongest-performing emerging markets due to sustained semiconductor demand growth.

Commodities

Commodity prices strengthened modestly during March as resilient global demand and geopolitical risks supported energy and raw material markets. Oil prices remained elevated due to supply management efforts and ongoing geopolitical tensions.

Industrial metals benefited from improving manufacturing sentiment and artificial intelligence infrastructure demand, while gold prices continued trading near historic highs amid central bank buying and geopolitical uncertainty.