HONG KONG, Jan 2, (V7N) – Asian stock markets started the year on a sour note Thursday as worries about US interest rates, ongoing tariffs, and China's economic performance weighed on sentiment, extending Wall Street's holiday downturn into a fourth session.

2024 Recap: A Strong Year for Global Markets

Despite recent declines, 2024 was a stellar year for global markets:

US Markets:

Dow Jones Industrial Average: Up ~13%

S&P 500: Up ~23%

Nasdaq: Up ~29%

European Markets:

Germany's DAX: Up nearly 20%

FTSE 100: Up ~6%

France's CAC 40: Down 2.2%

Asian Markets:

Japan's Nikkei: Up nearly 20%

Bitcoin surged over 120%, crossing the $100,000 mark, while Ethereum gained 40%. Commodities like gold, coffee, and cocoa reached record highs.

January 2 Performance

Hong Kong's Hang Seng Index: Down 1.76% at 19,707.60

Shanghai Composite: Down 0.78% at 3,325.66

Tokyo's Nikkei 225: Closed (holiday until Monday)

Australia and South Korea: Edged up, buoyed by US equity futures trending higher.

Broader Economic Context

Political Turmoil in South Korea: Impeached President Yoon Suk Yeol continues to resist arrest, adding uncertainty to the region.

Nippon Steel's US Bid: The company reportedly submitted new proposals to the White House in an attempt to secure its takeover of US Steel, pushing US Steel shares up 14% on Tuesday.

Key Currency and Commodity Movements

Currencies:

Euro/dollar: $1.0370 (up from $1.0360)

Pound/dollar: $1.2531 (up from $1.2520)

Dollar/yen: 157.27 yen (down from 157.32 yen)

Oil Prices:

West Texas Intermediate (WTI): Up 0.5% at $72.08 per barrel

Brent Crude: Up 0.5% at $74.98 per barrel

While 2024 ended on a high for equities and cryptocurrencies, early signs of 2025 indicate a more cautious tone as global economic and political uncertainties persist. Investors are likely to keep a close eye on central bank policies, geopolitical developments, and corporate earnings in the weeks ahead.

END/BUS/RH