Asia Market Quick Take – December 22, 2025

Key points:

• Macro: UK retail sales drop to 6-month low, below expectations
• Equities: US stocks rise; tech gains, Oracle surges, driven by TikTok deal
• FX: JPY continues to weaken after BoJ rate hike
• Commodities: Silver hits a record high above $67.46 per ounce
• Fixed income: Japan's 10-year yield peaks post-BoJ rate hike, hitting 1999 high

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Disclaimer: Past performance does not indicate future performance.

Macro:

• President Trump attributed the rise in unemployment to 4.5% to unprecedented cuts in government workforce numbers. President Trump announced plans to convene insurance companies to urge price reductions and reaffirm system participation. Furthermore, Trump revealed agreements with nine pharmaceutical firms to lower Medicaid drug prices and pledged to maintain most-favored-nation pricing for new drugs. The companies committed over $150 billion for US manufacturing and R&D, agreed to remit foreign revenues to offset US costs, and gained tariff relief, according to Reuters.
• The CBI retail sales balance dropped to -44 in December, a six-month low and below expectations. Sales volumes declined, continuing a downturn since mid-2023, with January set to hit -57, the lowest since March 2021. Poor Christmas sales reflected weak consumer confidence, as online and wholesale sales contracted sharply. The distribution sector saw its steepest drop in over five years due to weak demand and high costs.
• U.S. existing home sales rose 0.5% in November to 4.13 million, boosted by lower mortgage rates amid weak labor data. Median prices increased 1.2%, while inventory fell 5.9% to 4.2 months' supply.

Equities: 

• US - US stocks rose on a triple-witching Friday, with the S&P 500 edging up 0.1%, the Nasdaq climbing 1.4%, and the Dow increasing over 200 points amid strong tech performances. Oracle surged over 6% following its role in TikTok's U.S. operations sale, while Micron Technology rose 5.5%, adding to its recent gains. Conversely, Nike dropped 10% due to weak Chinese revenue and tariff pressures, and FedEx fell more than 2% after disappointing quarterly results. Investor optimism remained buoyed by expectations of continued Fed rate cuts next year. Weekly movements saw the S&P 500 up 0.8%, the Dow advancing 1%, and the Nasdaq down 0.8%. US stock futures advanced on Monday ahead of a shortened holiday week.
• EU - European equities rose on Friday, with the STOXX 50 up 0.6% and STOXX 600 increasing 0.4% to a new record. Gains were driven by anticipation of Fed rate cuts next year and reduced expectations for ECB rate hikes in 2026. Key movers included ASML (+1%), Novo Nordisk (+2%), HSBC, and AstraZeneca (both +1%). Cyclical and defensive stocks like Rolls-Royce (+2.7%), Prosus (+2.3%), and Roche (+2.2%) also rallied. In contrast, sportswear stocks lagged as Puma fell 1% and Adidas 3%, impacted by Nike's report of declining margins due to China demand and tariffs. Investors also noted the EU's plan to issue joint bonds for €90 billion in loans to Ukraine.
• HK - Hang Seng rose 0.75%, closing at 25,690 on Friday, marking its third consecutive gain as all major sectors rallied. Optimism was fueled by rising mainland equities following ByteDance's deal with investors to operate TikTok’s U.S. app, potentially avoiding a ban. Anticipation of year-end stimulus from Beijing and PBoC rate decisions further buoyed sentiment. Man Wah Holdings soared 7.3% after acquiring U.S. furniture maker Gainline Recline Intermediate, while CSPC Pharma climbed 2.8% on positive drug trial news. Gains were also seen in Nongfu Spring (3.8%), Galaxy Entertainment (2.2%), and Meituan (1.5%).

FX:

• Dollar Index rose due to JPY weakness after the BoJ raised rates to 0.75%. Governor Ueda suggested future hikes would depend on economic impact. Yen briefly strengthened after Finance Minister Katayama's comments but fell back. USDJPY is now at 157.50.
• AUD remained stable around 0.6615 amid holiday-induced low liquidity and optimism for a stock rally. Upcoming RBA minutes may hint at a February rate hike. Australian bond yields rose, while NZDUSD dipped slightly amid steady short-term yields.
• ECB officials signal a stable policy stance amid balanced growth and inflation risks, stressing a flexible, meeting-by-meeting approach due to geopolitical uncertainties. Inflation is on target, with rates adaptable to evolving conditions. EURUSD trades around 1.1715.

Commodities:

• Oil prices rose as the U.S. intensified its blockade on Venezuela, boarding the Centuries tanker and pursuing Bella 1. Geopolitical tensions in the Mediterranean, including Ukraine's attack on a Russian tanker, supported prices despite oversupply concerns. Brent gained 0.6% to $60.83; WTI increased 0.6% to $56.86.
• Silver surges to a record high, exceeding $67.46 an ounce on Monday morning.

Fixed income:

• Australian and New Zealand bonds fell amid U.S. Treasury declines. Australia's yields rose with the 3-year at 4.14% and 10-year at 4.78%. U.S. bond futures were steady before a two-year note auction. Japan's 10-year yield hit its highest since 1999 after a BoJ rate hike.

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