Seoul Stock Exchange Soars 76% in 2025; Tokyo and Hong Kong Also Post Strong Annual Gains in Asia

Asian and Pacific stock markets closed the final trading session of 2025 without a clear direction on Wednesday (31), as investors remained cautious ahead of the New Year holiday while assessing tentative signs of a recovery in China’s manufacturing sector, the region’s main economic engine.

In mainland China, markets ended slightly higher. The Shanghai Composite Index edged up 0.09% to 3,968.84 points, finishing the year with an 18% cumulative gain. The more technology- and small-cap–oriented Shenzhen Composite Index rose 0.30% on the day to 2,530.96 points, closing 2025 with a robust 29% increase.

Market sentiment was supported by encouraging industrial data. China’s manufacturing Purchasing Managers’ Indexes (PMIs) rose to 50.1 in December, both in the official survey and in the private Caixin survey. Readings above 50 indicate expansion, suggesting a modest but meaningful rebound in activity in the world’s second-largest economy toward year-end.

In Hong Kong, the Hang Seng Index fell 0.87% on Wednesday to 25,630.54 points, weighed down by profit-taking ahead of the holiday break. Despite the daily decline, the index posted a 28% gain in 2025, marking its best annual performance since 2017, driven largely by a recovery in the property sector and strong gains in technology stocks.

Markets in Taiwan closed higher. The Taiex Index rose 0.89% to 28,963.60 points, ending the year with a 25.7% annual advance, supported by strong global demand for semiconductors and continued growth in artificial intelligence related industries.

In Oceania, Australia’s stock market ended the session virtually unchanged. The S&P/ASX 200 Index slipped 0.03% to 8,714.30 points. Still, the benchmark finished 2025 with a 6.8% gain, supported by mining, energy, and banking stocks.

The standout performers of the year, however, were Seoul and Tokyo, which had already concluded trading on the previous day. South Korea’s stock market posted a remarkable 76% surge in 2025, reflecting sharp gains in technology companies, memory-chip makers, and artificial intelligence related firms, as well as increased foreign investor inflows. Japan’s market advanced 26% for the year, supported by strong corporate earnings, an accommodative monetary policy stance, and a relatively weak yen that boosted exporters.

Overall, Asia’s 2025 market performance points to an uneven but broadly positive recovery, with investors closely watching China’s economic trajectory and global monetary policy outlook heading into 2026.