Asian stock markets rose slightly on Tuesday. However, movements were limited in a holiday-shortened week. China continues to struggle with a faltering recovery, despite leaders in Beijing pledging more support. “China faces significant challenges in 2025,” said Ronald Temple, chief market strategist at Lazard. “The ongoing housing crisis has shaken consumer confidence. A possible trade war with the USA could trigger the worst slump in growth in decades.” In recent years, the expectations of investors in China have been raised and disappointed more than once. “This is unlikely to change in 2025. China’s economy and market prospects largely depend on the speed and extent of the government’s reforms.” The Japanese stock market trended weaker, giving back some of the previous session’s gains. Tokyo closed The Nikkei index, which includes 225 stocks, was down 0.3 percent at 39,036.85 points. The broader Topix remained almost unchanged at 2,727.36 points The index of the most important companies in Shanghai and Shenzhen also gained 0.9 percent.Honda shares at the top in the Nikkei indexHonda was by far the best-performing stock in the Nikkei and rose by 12, 22 percent. Nissan endured volatile trading, losing up to 7.33 percent in early trading before recovering strongly and ending the day up 6 percent. Honda and Nissan had Talks about a merger by 2026 confirmed. Nissan partner Mitsubishi Motors announced that it is also considering joining the alliance. Mitsubishi shares rose 7.19 percent. The historic pivot in the Japanese auto industry underscores the threat that Chinese electric vehicle makers now pose to long-dominant traditional automakers. The dollar was near a two-year high, supported by high U.S. Treasury yields. Investors are preparing for fewer interest rate cuts from the US Federal Reserve in 2025. In Asian currency trading, the dollar gained marginally to 157.03 yen and edged up to 7.2989 yuan. Against the Swiss currency, it moved up slightly to 0.8991 francs. At the same time, the euro fell by 0.1 percent to 1.0394 dollars and rose slightly to 0.9347 francs. More on the subject Oil prices rose on Tuesday, making up for the losses from the previous day. Slightly positive market prospects and stronger economic data from the USA supported the prices. However, trading volumes were low given the upcoming Christmas holidays. On the raw materials market, Brent crude oil from the North Sea rose by 0.3 percent to $72.83 per barrel (159 liters). US WTI oil was 0.3 percent higher at $69.42. FGE analysts expect reference prices to fluctuate around current levels in the short term. Activity slowed during the holiday season and market participants held off until they had a clearer view of global oil balances for 2024 and 2025, they said.
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