Investors Optimistic In Year End Countdown – Asia Market Wrap

Global stocks struggled for momentum amid a lack of positive catalysts heading into the end of the year. Silver and gold regained their footing after a plunge from fresh all-time highs.

The MSCI All Country World Index barely budged after losing 0.2% on Monday, which marked its first decline in eight sessions. A gauge of Asian shares was flat while futures on the S&P 500 Index were also steady after the US benchmark fell 0.3% Monday and the Nasdaq 100 slid 0.5%. China’s onshore yuan strengthened beyond the key 7-per- dollar level for the first time since 2023.

Tuesday marks the last trading session of the year for several equity markets, including in Japan, South Korea and Thailand. Focus will later shift to the release of minutes from the Federal Reserve’s December meeting, where it delivered a third consecutive interest-rate reduction and maintained its outlook for just one cut in 2026.

Despite the recent moves, global equities remained on track for a third straight annual gain following this year’s strong rally in shares linked to the artificial intelligence theme. Up 21% in 2025, MSCI’s world gauge is set for its best performance since 2019.

If history is any guide, investors have a reason to be optimistic heading into the new year. The gauge has climbed an average 1.4% in the last 10 January months, advancing in six of the instances, data compiled by Bloomberg show.

On Wall Street too, a consensus is taking hold that US stocks will continue rallying in 2026, even though the S&P 500 Index’s 17% advance this year means it has underperformed many global peers. Despite a raft of risks spanning a potential bust in the AI advance to unanticipated policy shocks, sell-side strategists are forecasting another 9% average gain in the gauge next year.