Asian Markets End Year on AI Optimism as Precious Metals and Currencies Shine 
Oil Prices Slide in 2025 as Oversupply and Geopolitical Risks Shape Market Outlook 
Asia Manufacturing PMI Rebounds as Exports and Tech Demand Drive Growth into 2026 
South Korean Won Slides Despite Government Efforts to Stabilize Currency Markets 
Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns 
China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 
U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment 
Oil Prices Stabilize at Start of 2026 as OPEC+ Policy and Geopolitical Risks Shape Market Outlook 
South Korea Factory Output Misses Forecasts in November Amid Ongoing Economic Uncertainty 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
U.S. Stock Index Futures Steady as Markets Await Fed Policy Clues in Holiday-Thinned Trade 
Japanese Business Leaders Urge Government Action as Weak Yen Strains Economy 
South Korea Exports Hit Record High as Global Trade Momentum Builds 
Most Asian currencies traded largely unchanged on Monday as markets adopted a cautious, risk-off stance following renewed U.S. tariff threats against Europe, even as slightly stronger-than-expected economic data from China provided limited support. Investors balanced global trade uncertainty with signs of resilience in the region’s largest economy, keeping foreign exchange movements constrained.
The U.S. dollar softened modestly during Asian trading hours, with the US Dollar Index slipping 0.2% from a seven-week high, while Dollar Index futures were down around 0.3%. The pullback reflected some profit-taking and mild risk aversion as geopolitical and trade-related headlines dominated sentiment.
China offered a partial offset to the cautious mood after official data showed the economy grew slightly faster than expected in the fourth quarter. The growth figure allowed China to meet its official annual target of around 5%, easing concerns about a sharper slowdown despite ongoing challenges from weak domestic demand and persistent strains in the property sector. Following the data release, the Chinese yuan strengthened, with the onshore USD/CNY pair falling about 0.1% to its lowest level since May 2023, marking a roughly 32-month high for the currency.
Broader Asian foreign exchange markets, however, remained range-bound. The South Korean won edged weaker, with USD/KRW up 0.1%, while the Singapore dollar strengthened modestly as USD/SGD slipped 0.2%. The Indian rupee was little changed, reflecting stable domestic conditions and limited external triggers. The Australian dollar also saw mild gains, with AUD/USD rising around 0.1%, supported by improved regional growth sentiment.
Risk appetite deteriorated after U.S. President Donald Trump announced plans to impose new tariffs on eight European nations opposing his proposal to acquire Greenland. The proposed levies, starting at 10% from February and potentially rising to 25% by June, reignited fears of escalating transatlantic trade tensions. Reports that the European Union could revive a large tariff package against U.S. goods further weighed on global sentiment.
In this environment, the Japanese yen benefited from safe-haven demand, strengthening modestly as USD/JPY fell to a 10-day low. Political uncertainty in Japan, including speculation over a possible snap election, remained an additional factor influencing yen movements, with analysts maintaining a medium-term bias for a stronger yen depending on political outcomes.
