May 2025

• Global markets delivered positive performance in May as moderating inflation, resilient corporate earnings and continued enthusiasm surrounding artificial intelligence supported investor sentiment.
• Technology and semiconductor-related sectors remained the primary drivers of equity market gains globally.
• Central banks moved closer toward policy easing as inflation trends improved across major economies.
• Bond yields declined modestly during the month, supporting growth-oriented sectors.
• Chinese economic conditions stabilised further following additional fiscal and monetary support measures.
• Commodity prices delivered mixed performance amid stable demand conditions and ongoing geopolitical uncertainty.

Asia (ex. Japan)

Asian markets outside Japan advanced during May as strong semiconductor demand and improving Chinese economic sentiment supported investor confidence across the region.

Taiwan and South Korea remained standout performers due to sustained artificial intelligence infrastructure investment and robust chip demand, while Chinese markets benefited from continued policy easing efforts.

Europe

European equities delivered strong performance during May as inflation continued moderating and expectations increased for imminent European Central Bank interest rate cuts.

Financial, industrial and luxury goods sectors performed well as improving financial conditions and resilient consumer activity supported earnings expectations.

United States

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

Investors grew increasingly confident that the Federal Reserve would begin gradually easing monetary policy later in the year as inflation pressures continued softening.

United Kingdom

UK equities advanced during May as easing inflation and improving consumer sentiment supported broader market conditions.

Markets increasingly anticipated future Bank of England rate cuts as borrowing costs and wage pressures moderated gradually.

Japan

Japanese equities remained strong during May as exporters and technology companies benefited from sustained global semiconductor demand and continued foreign investor inflows.

Corporate governance reforms and improving shareholder return policies remained important supportive factors for Japanese markets.

Emerging Markets

Emerging markets delivered positive performance during May as declining global bond yields and improving Chinese growth expectations supported investor appetite for higher-risk assets.

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

Commodities

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

Industrial metals strengthened due to infrastructure investment and technology-related demand, while gold prices remained elevated amid continued central bank buying and expectations for future interest rate cuts.