Asian Stocks Waver, Yuan Climbs Past 7 Per Dollar: Markets Wrap

(Bloomberg) — Asian stocks lost momentum after a seven-day winning run, with Tuesday marking the end of the trading year for several of the region’s markets. Silver and gold regained their footing after a plunge from fresh all-time highs.

MSCI Inc.’s gauge of Asia Pacific shares was little changed after capping its longest streak of gains since September on Monday. Futures on the S&P 500 Index were steady after the US benchmark fell 0.3% Monday and the Nasdaq 100 slid 0.5%. A gauge of global equities declined for the first time in eight sessions on Monday while still staying on course for its best year since 2019.

In currency markets, China’s yuan strengthened beyond the key 7-per-dollar level in the more tightly controlled onshore market for the first time since 2023, signaling the nation’s comfort with further currency appreciation.

“Asian equities are seeing some profit-taking in selective sectors and large index names that have performed well this year,” said Gary Tan, a portfolio manager at Allspring Global Investments in Singapore.

Tuesday marks the last trading session of the year for several equity markets, including Japan, South Korea and Thailand.

Precious metals continued to be a focus for investors, with trading having turned volatile ahead of year-end following their relentless rally in 2025.

Silver rebounded more than 3% on Tuesday after tumbling 9% in the previous session. The selloff in the white metal had followed a historic surge powered by speculative trades and fears of a supply shortage. Gold was up 0.6% after losing more than 4% on Monday.

Elsewhere in metals, copper headed for the longest winning run since 2017 in a December rally boosted by the prospect of more stress in the supply chain. Nickel hit the highest since March after top producer Indonesia flagged plans to cut supply in order to boost prices.

Meanwhile, some of Asia’s strongest currency trends are starting to unravel as the year winds down, with the South Korean won and the Thai baht leading the reversals.

The won, which was approaching a threshold last breached during the global financial crisis, has bounced back since the middle of last week as authorities signaled their support for the currency. On the other end of the spectrum, the baht, this year’s second-best performing Asian currency, is ceding ground on fears the central bank may push back against the rally, which threatens the nation’s exports.

Equity Outlook

Global equities remained on track for a third straight annual gain following this year’s strong rally in shares linked to the artificial intelligence theme. The MSCI All Country World Index has climbed 21% in 2025 and was little changed on Tuesday.

Investors have reason to be optimistic heading into the new year, if history is any guide. The global gauge climbed an average 1.4% in the last 10 January months, advancing in six of the instances, data compiled by Bloomberg show.

As for Asia, the regional benchmark has jumped more than 25%, with South Korea’s Kospi being the region’s top performer with a 76% surge. While the S&P 500’s 17% advance means it has underperformed many global peers in 2025, an optimistic consensus is taking hold that US stocks will continue rallying in 2026.

Despite a raft of risks spanning a potential bust in the AI advance to unanticipated policy shocks, sell-side strategists are forecasting another 9% average gain in the S&P 500 next year.

Meantime, President Donald Trump teased that he has a preferred candidate to be the next chair of the Federal Reserve, but is in no hurry to make an announcement — while also musing that he might fire the central bank’s current leader, Jerome Powell.

Investors were also assessing the outlook for US interest rates and monetary policy. Wall Street rate strategists — with several notable exceptions — expect stable-to-higher Treasury yields in 2026 despite Fed cuts.

The Fed is due to release minutes of its December meeting later on Tuesday. The yield on 10-year Treasuries was steady after slipping about two basis points to 4.11% in the previous session.

Elsewhere in markets, Bitcoin fluctuated. The cryptocurrency topped $90,000 in the last session before erasing its gain. A gauge of the dollar edged slightly lower.

Corporate News:

Shares of biotech startup Insilico Medicine Cayman TopCo, which uses AI to improve drug discovery, surged as much as 48% in their trading debut in Hong Kong on Tuesday. Ganfeng Lithium Co., a major Chinese producer of the battery material, said it faces possible insider-trading charges. Vietnamese electric-vehicle taxi operator Green & Smart Mobility JSC, which is owned by the country’s richest man, is weighing an international initial public offering that could value the company at about $20 billion. Meta Platforms Inc. has agreed to acquire Singapore-based AI startup Manus, which makes an artificial intelligence agent that it sells to small and medium-sized businesses. Citigroup Inc. said it expects to post a roughly $1.1 billion after-tax loss on the sale of its remaining business in Russia to Renaissance Capital. SoftBank Group Corp. is in advanced talks to acquire DigitalBridge Group Inc., a private equity firm that invests in assets such as data centers, according to people with knowledge of the matter. DigitalBridge jumped more than 40% in premarket trading. A supplier to Tesla Inc. ended up providing a tiny fraction of battery material the carmaker ordered almost three years ago, in part due to issues with the Cybertruck, according to a person familiar with the matter. LG Electronics Inc. introduced a TV designed to resemble framed artwork, imitating a style that has been popularized by rival Samsung Electronics Co. in recent years. Stocks

S&P 500 futures were little changed as of 2:07 p.m. Tokyo time Japan’s Topix fell 0.2% Australia’s S&P/ASX 200 was little changed Hong Kong’s Hang Seng rose 0.3% The Shanghai Composite was little changed Euro Stoxx 50 futures were little changed Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1778 The Japanese yen was little changed at 156.04 per dollar The offshore yuan was little changed at 6.9958 per dollar Cryptocurrencies

Bitcoin was little changed at $87,197.92 Ether rose 0.3% to $2,942.03 Bonds

The yield on 10-year Treasuries was little changed at 4.11% Australia’s 10-year yield declined one basis point to 4.75% Commodities

West Texas Intermediate crude fell 0.1% to $58.01 a barrel Spot gold rose 0.6% to $4,359.98 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Abhishek Vishnoi.

©2025 Bloomberg L.P.