Global stocks fall as investors trim positions amid year-end uncertainty

Asian stocks fell and US and European equity futures edged lower as investors trimmed positions amid uncertainty heading into year-end.

The MSCI Asia Pacific Index snapped a five-day gain as shares slipped in Australia, Japan and China. Treasuries rose, with 10-year yields dropping from near the highest levels since May, News.Az reports, citing Bloomberg.

Trading was relatively thin across the region due to the holiday season.

“There’s a little bit of trepidation heading into year-end, owing in part to uncertainty over how the international trade picture may take shape in 2025,” said Tim Waterer, chief market analyst at Kohle Capital Markets Pty. “Some traders are taking risk off the table heading into year-end, which is leading to weakness on Asian bourses.”

Trading volumes for Japanese stocks were about 17% below their 30-day average, while those in Australia were about 51% lower, according to data compiled by Bloomberg. Monday is the last trading day for Japanese financial markets for the year, with public holidays from Tuesday through Jan. 6.

Nissan Motor Co. shares fell as much as 6.7% in Tokyo on concern the terms of the carmaker’s planned deal with Honda Motor Co. would give investors a lower stake in the proposed joint holding company.

Jeju Air slid 16% in Seoul to a record after one of the carrier’s aircraft crashed on Sunday, causing the death of all but two of the 181 occupants. The stock of its parent AK Holdings Inc. fell 12%.

While Asian shares are most lower Monday, they are still heading for a successful year. The MSCI Asia Pacific gauge has advanced 7.6% in 2024 as central banks eased monetary policy and tech stocks rallied amid optimism over artificial intelligence.

Treasury 10-year yields dropped two basis points to 4.61% after climbing to as high as 4.64% last week. Yields had pushed higher this month after the Federal Reserve signaled the likelihood of fewer interest-rate cuts in 2025.

The Australian dollar strengthened against most of its Group-of-10 peers, climbing from near this year’s low against the greenback on the back of higher iron ore prices.

The Bloomberg Dollar Spot Index was little changed. The gauge has gained more than 7% in 2024, driven by the anticipation of “America First” policies from President-elect Donald Trump.

The S&P 500 index slipped 1.1% Friday and the Nasdaq 100 dropped 1.4%. While every major industry group saw losses, tech megacaps bore the brunt of the selling. That’s after a surge that has seen the so-called “Magnificent Seven” account for more than half of the US equity benchmark’s gains in 2024.

Oil was little changed in quiet year-end trading with the market focused on the outlook for 2025. Crude is heading for a loss this year, with trading confined to a narrow range since mid-October. Gold is set for one of its biggest annual gains this century.

News.Az