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Most Asian stock markets were closed on Wednesday, the final trading day of 2025, but the region remained on track to finish the year with strong gains, led by technology and semiconductor shares amid accelerating demand for artificial intelligence, despite periodic volatility tied to U.S. trade policy.
With major markets including Japan, South Korea, and several Southeast Asian exchanges shut for the New Year holiday, trading activity was thin across the region. U.S. markets ended slightly lower overnight, and futures linked to Wall Street benchmarks also edged down during Asian hours on Wednesday.
Asia stocks set for stellar yearly gains
Asian equities posted steady gains through much of 2025, powered largely by robust performances in chipmakers, data-center operators, and hardware suppliers as investors bet on widespread AI adoption. Markets with heavy exposure to technology exports — particularly South Korea, Hong Kong, and Taiwan — were among the strongest performers, even as broader economic growth across the region remained uneven.
Japan’s Nikkei 225 was set to climb more than 26% for the year, while South Korea’s KOSPI was on track for a surge of over 75%. China’s Shanghai Composite was headed for an 18% annual rise, and Hong Kong’s Hang Seng advanced nearly 28%. Australia’s S&P/ASX 200 was poised to gain about 7%, India’s Nifty 50 about 10%, and Singapore’s Straits Times Index roughly 23%.
However, gains were occasionally interrupted by bouts of volatility triggered by trade tensions. Repeated tariff announcements from U.S. President Donald Trump unsettled markets at various points in 2025, particularly among stocks tied to global supply chains.
Chinese factory activity returns to growth
Sentiment received some support on Wednesday from fresh data showing that China’s factory activity returned to growth in December. Official purchasing managers’ index figures indicated that manufacturing moved back above the 50-point threshold separating expansion from contraction, hinting at a modest improvement in domestic demand toward the end of the year.
As 2025 draws to a close, investors are expected to shift their focus in January toward corporate earnings outlooks, central bank guidance, and further developments in artificial intelligence — the dominant theme shaping equity performance across Asia throughout the year.
