Asian stocks set to end the year with solid gains

Asian equities delivered steady gains through much of 2025, driven largely by strong performances in the technology and semiconductor sectors

Most Asian stock markets were closed on Wednesday, the final trading day of 2025, but the markets were on track to end the year with solid gains, led by technology shares amid surging demand for artificial intelligence.

With several Southeast Asian exchanges shut for the New Year holiday, trading activity was thin across the region.

Asian equities delivered steady gains through much of 2025, driven largely by strong performances in the technology and semiconductor sectors.

Investor enthusiasm around artificial intelligence adoption boosted chipmakers, data centre operators, and hardware suppliers, helping lift indexes even as broader economic growth remained uneven.

Markets with heavy exposure to technology exports, including South Korea, Hong Kong, and Taiwan, were among the strongest performers this year.

Nikkei 225 was set to rise more than 26% this year, while KOSPI was on track to surge more than 75%.

Shanghai Composite index is headed for an 18% rise in 2025, while Hang Seng has jumped almost 28%.

S&P/ASX 200 was set to rise 7%, while Nifty 50 headed for a 10% annual gain.

Straits Times Index was on track for a 23% yearly jump.

However, gains were periodically interrupted by volatility stemming from trade tensions.

On Wednesday, sentiment received some support from China, where data showed factory activity returned to growth in December.

Official purchasing managers’ index figures indicated that manufacturing moved back above the 50-point mark separating expansion from contraction, suggesting a modest improvement in domestic demand toward the end of the year.

Investors viewed the data as a cautiously positive signal for the world’s second-largest economy after months of sluggish momentum.

With 2025 drawing to a close, investors are expected to refocus in January on earnings outlooks, central bank signals, and developments in artificial intelligence, which has emerged as the dominant theme shaping equity performance across Asia.