- Asian stocks fell slightly on the final day of 2024 amid low holiday volumes, with the MSCI Asia Pacific Index down 0.2% but forecast for an 8% annual gain. Markets in Japan, South Korea and Thailand were closed, while Hong Kong, the Philippines, Australia and New Zealand had shortened sessions.
- Chinese stocks fell after manufacturing PMI data showed slower expansion in December, at 50.1 from 50.3 in November, below expectations. The CSI 300 and Shanghai Composite both fell 0.4%, while Hong Kong’s Hang Seng rose 0.7%. The non-manufacturing PMI improved to 52.2 from 50.0.
- South Korea’s political crisis deepened when a court approved an arrest warrant for deposed President Yoon Suk Yeol over his brief declaration of martial law on Dec. 3. The unprecedented move comes as interim President Han Duck-soo was also removed from office, while the country grapples with the Jeju plane crash that killed 179 people on Sunday.
- Most Asian currencies weakened against the dollar and headed for annual losses. The dollar index held near its highest levels in two years, despite falling 0.1% to 107.95. The USD/JPY pair fell 0.3% to 156.43, but remains on track for a 10% annual decline. USD/INR has hit new record highs, with the rupee expected to weaken by over 3% in 2024.
- Oil prices rose, with Brent rising 0.8% to $74.64 and WTI gaining 0.9% to $71.67, although both benchmarks are heading for annual losses of 3.2%. and 0.6% respectively. Increased Chinese factory activity has provided some support, but concerns persist over 2025 demand amid extended OPEC+ cuts.
- Gold has been trading around $2,607, but remains on track for a bumper 26% gain in 2024, its best annual performance in more than a decade. Silver held steady around $29.31, while copper fell 0.2% to $8,925, despite continued expansion of China’s manufacturing industry.
- Cocoa and coffee were the best performing commodities in 2024, with cocoa prices almost tripling due to persistent supply deficits. Looking ahead to 2025, trade tensions are expected to dominate as Trump returns to power threatening high tariffs on Chinese goods.
- Beijing has adopted new regulations to encourage self-driving technology, allowing driverless public buses and taxis after safety assessments starting in April 2025. The move comes as companies like Apollo Go and Pony.ai Baidu are developing their robot taxi fleets, while Tesla plans to introduce fully autonomous driving in the first quarter of 2025.
- Many global markets are closed or have shortened sessions for New Year’s Eve. Germany, Switzerland, Italy, Brazil and South Korea are closed entirely. Hong Kong and Singapore will close at 12:00 p.m., the UK at 12:30 p.m., New Zealand at 12:45 p.m., Spain at 2:00 p.m., France at 2:05 p.m. and Australia at 2:10 p.m.
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