Stock markets expected to surge globally in 2025

Stock Markets Post Strong Gains Across Globe

The S&P 500, a benchmark for US stocks, has recorded its third consecutive year of double-digit gains. In contrast, non-US stocks have achieved their best performance since 2009. The MSCI ACWI Ex-US index, which tracks non-US stocks in over 40 markets, is on track to finish the year up approximately 30 percent, surpassing the nearly 18 percent return of the S&P 500.

This trend marks a departure from the previous decade-long dominance of US stocks in global indexes. Analysts attribute the strong performance of non-US markets to various factors, including uncertainty caused by US President Donald Trump’s trade policies, concerns over high valuations of tech firms, and the impact of artificial intelligence advancements in China.

Asia has seen significant gains, with South Korea leading the way. The KOSPI index finished the year up nearly 76 percent, driven by strong demand for SK Hynix and Samsung Electronics’ chips used in AI. Hong Kong’s Hang Seng Index and Shanghai’s SSE Composite Index also posted substantial gains, rising nearly 31 percent and over 21 percent, respectively.

Japan’s Nikkei 225 was up about 28 percent, while European markets finished strong as well. The FTSE 100 in London and DAX 40 in Frankfurt were both on track to finish the year up more than 20 percent.

Source: Al Jazeera