At a Glance
- Asian markets open 2026 with AI-driven gains, South Korea’s benchmark hits a record high.
- Hong Kong’s Hang Seng rises 2.6%, Alibaba and Baidu rally 3.7% and 9.5%.
- US stocks finish 2025 on record highs but close lower, with the S&P 500 down 0.7% on the final day.
Why it matters: AI-related demand for chips and data-center infrastructure is reshaping global equity and commodity markets, influencing investors and industry strategies.
Asian stocks began 2026 on a positive note as optimism around artificial intelligence pushed markets higher. Meanwhile, U.S. equities ended the previous year on record highs, though they slipped in the final trading session.
Asian Markets Rally
Asian equities opened the year with gains, led by a record-setting close of the South Korean benchmark. The market’s heavyweight, Samsung Electronics, surged 7.2%, while SK Hynix climbed 4%.
Hong Kong’s Hang Seng climbed 2.6% to 26,283.53, buoyed by strong tech shares. E-commerce giant Alibaba rose 3.7%, and Baidu jumped 9.5% after announcing a planned spin-off of its AI chip unit, Kunlunxin, pending regulatory approval.
- Samsung Electronics +7.2%
- SK Hynix +4%
- Alibaba +3.7%
- Baidu +9.5%
- Hang Seng +2.6%
Global Market Snapshot
Other Asian markets were mixed. Taiwan’s Taiex added 1.3%, India’s Sensex rose 0.6%, and the S&P/ASX 200 in Australia edged 0.2% higher. Markets in Tokyo, Shanghai, Thailand and New Zealand remained closed.
| Index | Change |
|---|---|
| South Korea (Kospi) | +2.3% |
| Hong Kong Hang Seng | +2.6% |
| Taiwan Taiex | +1.3% |
| India Sensex | +0.6% |
| Australia S&P/ASX 200 | +0.2% |
Manufacturing data across the region remained weak, but exports surged, according to a report by Capital Economics. Shivaan Tandon noted that the near-term outlook for Asia’s export-oriented manufacturing sectors remains favorable.
US Market Year-End
U.S. equities ended 2025 on record highs but closed lower on the final day. The S&P 500 fell 0.7% to 6,845.50, the Dow dropped 0.6% to 48,063.29, and the Nasdaq slipped 0.8% to 23,241.99.
The S&P 500 recorded 39 new highs during 2025 and finished 16.4% higher for the year. The Nasdaq gained 20.4%, while the Dow ended 13% higher.
| Index | Year-End % |
|---|---|
| S&P 500 | +16.4% |
| Nasdaq | +20.4% |
| Dow | +13% |
Investors were buoyed by AI optimism, strong corporate profits, and three Fed rate cuts. President Trump paused his tariff policy, easing trade tensions, while the Labor Department reported fewer unemployment claims.
All S&P 500 sectors closed in the red on the final day, with technology dragging the market. Western Digital fell 2.2% and Micron Technology dropped 2.5%.
Commodities and Currencies
Silver rallied 4% after a 9.4% decline, marking a 140% gain for 2025. Gold added 1%, closing the year with a 63.7% rise.
U.S. benchmark crude rose 46 cents to $57.88 per barrel, while Brent climbed 45 cents to $61.30.
The U.S. dollar strengthened against the yen to 156.87 from 156.75, and the euro rose to 1.1737 from 1.1746.
Key Takeaways
- Asian markets opened 2026 on AI-driven momentum, with South Korea hitting a record high.
- U.S. equities finished 2025 on record highs but slipped on the final day.
- Commodities and currencies moved in line with broader market trends, with oil and precious metals gaining.
The convergence of AI enthusiasm, robust corporate earnings, and favorable export conditions is shaping the first months of 2026, while the U.S. market’s year-end performance underscores the lasting impact of 2025’s gains. Investors will watch how these trends evolve as the year progresses.
