Asia Starts New Year on a Cautious Note After 2024’s End
Asian markets are set to open the New Year with uncertainty following a rocky finish to 2024 for global investors
Asia, Markets, 2024, Investors, China, Japan, South Korea
Tokyo: Asian stocks are gearing up for a rough start to the New Year. After a shaky end to 2024, investors are feeling a bit uneasy.
The S&P 500 and Nasdaq 100 both dropped for four days straight, wiping out over a trillion dollars in market value. Futures in Shanghai and Sydney are looking down, and Chinese stocks took a hit on the last trading day of December.
While most Asian markets are expected to dip, there’s a chance Hong Kong might see a slight uptick. Japan is closed until January 6, and New Zealand is still on holiday. South Korea will open a bit later than usual.
Energy markets are also in focus as trading kicks off again. Russian gas supplies to Europe via Ukraine have stopped, marking the end of a 50-year route. Both sides confirmed this halt after a key deal expired.
Oil prices went up on the last day of 2024, but the market is bracing for a surplus in 2025. Meanwhile, Treasuries managed a small annual gain, though it was less than last year. The Bloomberg Dollar Spot Index had its best year in nearly a decade.
In other news, Nippon Steel Corp. is trying to win over the US government for its takeover of US Steel Corp. by offering a veto on production cuts. This news sent US Steel shares soaring.
Over in China, Alibaba is selling its shares in Sun Art Retail to focus more on its online business. BYD also reported a big jump in car sales, hitting 4.25 million for the year.
On a broader scale, China’s economy is expected to grow about 5% in 2024, according to President Xi Jinping. Singapore’s Prime Minister said their economy did better than expected, with a 4% growth rate.
Meanwhile, South Korea is facing a political crisis, with Acting President Choi Sang-mok rejecting his advisers’ resignation attempts.
In Australia, house prices fell for the first time in 22 months as buyers are getting priced out of the market.
Abu Dhabi’s Mubadala Investment Co. was super active last year, making deals in various sectors, while Saudi Arabia’s Public Investment Fund slowed down its spending.
US tech stocks had a great year, with the S&P 500 gaining 23%. That’s added a whopping $10 trillion to US equity values.
As we head into 2025, investors are facing challenges like inflation and the Federal Reserve’s plans. Plus, there’s curiosity about how President-elect Donald Trump’s policies will impact the economy.
Key events to watch this week include US construction spending and jobless claims on Thursday, followed by manufacturing data on Friday.