Asia: Stocks begin year on cautious note
ASIAN stocks began 2025 mostly in the red on Thursday after worries about US interest rates, tariffs and China’s economy gave Wall Street the holiday blues for a fourth straight session.
Equities mostly had a bumper 2024 on the back of enthusiasm about artificial intelligence (AI), cuts in borrowing costs by central banks and Donald Trump’s presidential election win.
The Dow ended the year up by around 13 per cent, while the S&P 500 and the Nasdaq, which have more tech stocks, climbed over 23 per cent and around 29 per cent respectively.
Germany’s DAX added almost 20 per cent, as did Japan’s Nikkei. The FTSE 100 gained nearly six per cent, and France’s CAC 40 was the outlier, falling 2.2 per cent.
Bitcoin exploded more than 120 per cent to break US$100,000 while fellow cryptocurrency Ethereum rose over 40 per cent. Gold, coffee and cocoa set new records.
“It was an exceptional year,” said Christopher Dembik, senior investment adviser at Pictet Asset Management.
But ahead of the New Year’s Day holiday, US stocks sank on Tuesday, although European equities advanced.
The Dow Jones lost 0.1 per cent, the S&P 500 declined 0.4 per cent and the Nasdaq gave up 0.9 per cent.
On Thursday, shares in Hong Kong and China fell. Tokyo remains closed until Monday.
Shares in Australia and South Korea edged up, helped by US equity futures pointing higher.
Political uncertainty continued to grip South Korea, with impeached President Yoon Suk Yeol resisting arrest for a third day.
“The Republic of Korea is currently in danger due to internal and external forces threatening its sovereignty, and the activities of anti-state elements,” Yoon said in a statement.
In Japan, Nippon Steel was not available for comment after it reportedly sent new proposals to the White House to try to save its takeover of US Steel.
US Steel shares soared as much as 14 per cent on Tuesday in New York after the reports in the Washington Post and elsewhere. AFP
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