Asian stocks subdued amid low year-end volumes

South Korea stood out as a regional outperformer, with shares jumping sharply on strong gains in heavyweight technology stocks

Most Asian stock markets traded in tight ranges on Monday as thin year-end volumes and limited participation kept investors cautious, even as expectations of easier U.S. monetary policy next year continued to underpin sentiment.

Wall Street indices ended marginally lower on Friday but remained upbeat amid ’Santa Claus’ rally optimism.

U.S. stock index futures traded largely unchanged during Asia hours on Monday.

South Korea stood out as an outperformer, with shares jumping sharply on strong gains in heavyweight technology stocks.

The benchmark KOSPI index climbed 1.7 per cent, led by chipmakers, after SK Hynix Inc surged nearly 6 per cent following its removal from an investment warning list.

Samsung shares also climbed 1.5 per cent.

Elsewhere, Japan’s Nikkei 225 edged 0.3 per cent lower, while the broader TOPIX index ticked up 0.1 per cent.

China’s Shanghai Composite index rose 0.3 per cent, while Singapore’s Straits Times Index was largely steady. Hong Kong’s Hang Seng index gained 0.4 per cent.

India’s Nifty 50 index was largely unchanged, while Australia’s S&P/ASX 200 fell 0.3 per cent.

Asian stocks have drawn underlying support from bets that the U.S. Federal Reserve will further reduce interest rates in 2026 after its recent policy cut.

Expectations of additional easing have helped improve the outlook for risk assets globally, lowering borrowing costs and supporting equity valuations, particularly in emerging markets and rate-sensitive sectors.

With year-end positioning largely complete, investors are focusing on how global growth trends, U.S. interest rate cuts, and regional policy developments will influence markets as Asia heads into 2026.