2025 was a strong year for many stock markets around the world. In the United States, the main stock indices were up between 13% and 20%. But for many investors in Asia, the returns were even higher.
Many stock markets in the Asia Pacific followed a similar pattern in 2025 — with declines in the spring — as investors focused on the uncertainty of tariff threats.
By the end of the year, sentiment was largely positive, especially for stock indices that included a connection to artificial intelligence.
The biggest winner was South Korea — where the KOSPI Index closed the year with a gain of more than 75%. That reflected enthusiasm about chipmakers involved with AI — but also got a boost from a stabilized government focusing on reforming corporate governance.
The excitement about AI was shared in other markets that performed strongly. Hong Kong's Hang Seng Index, Japan’s Nikkei and Taiwan's TAIEX were all up nearly 30% on the year.
Singapore's Straits Times was up about 20% — nearly matched by the Shanghai Composite.
More modest gains in India — with the Sensex up about 10% — and in Australia, where the All Ordinaries closed up about 7%.
But not all the stories were positive.
In the Philippines, the main stock index lost more than 7% — reflecting a slowing economy and concerns about domestic corruption.
A slowing economy also hit Thailand's SET Index — which lost about 10% for a third straight year of decline.
