Asia Pacific Stocks End 2024 on High Note, But South Korea Lags Behind

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ASIA PACIFIC STOCKS,TECH STOCKS,AI BOOM

The Asia-Pacific stock market finished 2024 strong, with most major markets seeing gains. Central bank easing and an AI boom fueled the positive performance. However, South Korea was the only major Asian market to end the year in negative territory.

Asia-Pacific stocks had a good run in 2024, with most major markets ending the year in positive territory. The region's central banks eased monetary policy while an AI boom lifted tech stocks. Mike Shiao, chief investment officer for Asia ex-Japan at investment management firm Invesco, said that with the Federal Reserve now having started its easing cycle, Asian countries will have more room to lower interest rates in 2025. An easier monetary policy tends to boost equities.

After this year's strong surge, demand for AI-enabled mobile phones, PCs, and other consumer electronics could increase in 2025, according to an outlook note by DBS Bank. DBS noted that the global semiconductor sector typically experiences an expansion cycle lasting around 30 months. The current cycle, which began in September 2023, has the potential to extend through the end of 2025. While tech stocks helped lift Taiwan, they couldn't save South Korea, which was the only major Asian market to end the year in negative territory. The country's'Corporate Value-up program' appears to have failed to boost stocks, with tariff fears and major economies, particularly the U.S. and China, will greatly impact South Korea's exports-driven economy, Paul Kim, head of equities at Eastspring Investments, said in the firm's 2025 outlook. 'Major exporters such as information technology hardware and auto players may face challenges,' he added

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Asia-Pacific Stocks End 2024 on a High Note, But South Korea Lags BehindMost Asia-Pacific markets closed the year in positive territory, fueled by easing monetary policy and a surge in tech stocks. South Korea, however, was the only major market to decline, hampered by economic uncertainties and political instability.
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Asia-Pacific Stocks End 2024 on a High Note, South Korea Lags BehindAsia-Pacific stocks enjoyed a successful year in 2024, with most significant markets gaining ground. This positive performance was fueled by accommodative monetary policies implemented by central banks in the region and a surge in tech stocks driven by the AI boom. However, South Korea stood out as the only major Asian market to experience a decline in value, attributed to factors such as tariff concerns and the uncertain political landscape following President Yoon Suk Yeol's impeachment. Analysts predict that the trajectory of Asian markets in 2025 will be heavily influenced by the economic policies of the U.S. and China, with the potential for continued growth if monetary easing persists and the AI sector maintains its momentum.
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