Citi Forecasts a Volatile but Ongoing Bull Market for S&P 500 in 2026 
U.S. Dollar Starts 2026 Weak as Yen, Euro and Sterling Hold Firm Amid Rate Cut Expectations 
Asia Manufacturing PMI Rebounds as Exports and Tech Demand Drive Growth into 2026 
Singapore GDP Growth Surges in 2025 but Outlook Remains Cautious Amid Global Trade Risks 
Oil Prices Slide in 2025 as Oversupply and Geopolitical Risks Shape Market Outlook 
Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns 
Asian Markets End Year on AI Optimism as Precious Metals and Currencies Shine 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
Gold Prices Rebound in Europe as Geopolitical Tensions and Fed Outlook Support Bullion 
South Korea Factory Output Misses Forecasts in November Amid Ongoing Economic Uncertainty 
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
Trump Delays Tariff Increases on Furniture and Cabinets for One More Year 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
Wall Street Ends Mixed as Tech and Financial Stocks Weigh on Markets Amid Thin Holiday Trading 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
Asian stock markets traded mixed on Friday as investors assessed contrasting signals from major central banks, while most regional indexes held steady ahead of key U.S. inflation data. Market sentiment was shaped by India’s rate cut, renewed expectations of a Bank of Japan hike, and anticipation surrounding the Federal Reserve’s next move.
In India, the Reserve Bank of India lowered its key repo rate by 25 basis points to 5.25%, delivering a widely expected move aimed at supporting economic growth as inflation continues to ease. Governor Sanjay Malhotra noted that inflation had “eased significantly” and is likely to remain softer than previous forecasts. The central bank also upgraded its GDP growth outlook for FY26, reinforcing confidence in the country’s economic momentum. The Nifty 50 index responded modestly, ticking up 0.2% following the announcement. Although the rate cut was anticipated, earlier optimism had cooled due to strong economic performance and the rupee’s slide to record lows.
Japanese stocks moved in the opposite direction, with the Nikkei 225 dropping about 1.5% as traders grew increasingly convinced that the Bank of Japan may raise interest rates in December. Comments from BOJ Governor Kazuo Ueda earlier in the week were viewed as hawkish, and a Reuters report indicated that policymakers could proceed with a hike with government tolerance, pressuring sentiment in Tokyo.
Across the broader Asian region, trading remained subdued as investors awaited the U.S. Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation gauge. Jobless claims data from the U.S. showed a decline to 191,000, keeping rate-cut expectations intact. China’s CSI 300 and Shanghai Composite were little changed, while Hong Kong’s Hang Seng edged 0.2% lower. South Korea’s KOSPI gained 0.7%, Singapore’s Straits Times Index slipped 0.4%, and Australia’s S&P/ASX 200 traded mostly flat.
This mix of policy shifts and cautious trading continues to shape investor outlook ahead of major economic updates.
