Asia Market Wrap - Nikkei Stays Flat, Topix Index Rises
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Japanese stocks rose on Tuesday, helped by a drop in government bond interest rates that improved investor confidence. The broad Topix index climbed 0.5%, finishing very close to its recent record high.
However, the tech-focused Nikkei index ended the day flat because concerns about the high prices of Artificial Intelligence stocks limited its growth. Although a significant drop in the chip company Advantest canceled out gains for the overall index, most individual companies actually saw their stock prices rise.
Financial sectors had a particularly strong day, with banks, insurers, and securities firms all posting solid gains ranging from 1% to 1.5%.
European Session - Novo Nordisk Jumps 7.6%
European stock markets briefly hit an all-time high on Tuesday, driven largely by success in the healthcare sector.
Novo Nordisk shares jumped 7.6% after U.S. regulators approved its new weight-loss pill, a win that helped the company compete against rivals and lifted the wider market. However, overall gains were limited because bank stocks which have otherwise had a very strong year slipped by 0.3%.
Luxury brands also saw small declines. Investors are currently cautious about trade tensions after China announced new taxes on European dairy products in retaliation for tariffs on electric vehicles, a move analysts fear could hurt economic growth.
Meanwhile, traders are waiting for new data on the U.S. economy, while shares of the German broker flatexDEGIRO fell after the company was fined for breaking trading rules.
On the FX front, the Japanese yen strengthened 0.7% against the US dollar to 155.9, recovering from recent losses after the Bank of Japan raised interest rates as expected.
The US dollar faced broader pressure, dropping in value against both the euro and the British pound, with the latter reaching its highest level in over two months.
The overall US dollar index fell for the second day in a row and is on track for its sharpest yearly decline since 2017.
Other major currencies also made gains against the dollar, with the Australian dollar, New Zealand dollar, and Swiss franc all rising in value.
Currency Power Balance
Source: OANDA Labs
Gold reached a new record high on Tuesday, climbing very close to the $4,500 per ounce mark. This rise was driven by a weaker US dollar and ongoing global instability, which encouraged investors to put their money into safe assets.
Silver also rallied to an all-time peak, rising nearly 1% to trade just under $70/oz. Silver has had an exceptionally strong year, gaining 141% in value so far due to supply shortages, high demand from industries, and increased interest from investors.
In the energy market, Oil prices barely moved on Tuesday as conflicting market forces balanced each other out. While the possibility that the US might sell seized Venezuelan oil kept prices from rising, traders remained worried about supply interruptions following Ukrainian attacks on Russian ships and piers.
As a result, Brent crude rose by just 7 cents to $62.14 a barrel, and US crude increased by 4 cents to $58.05. This calm trading follows a strong day on Monday, when prices jumped by over 2%.
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Economic Calendar and Final Thoughts
It is a quiet day on the calendar for European data releases with a bunch of medium impact data already released.
The US session will be a busy one with a host of data releases scheduled including the GDP release. There is a possibility that the data may not have the usual impact given that liquidity may be thin but expect the unexpected.
For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)
Chart of the Day - FTSE 100
From a technical standpoint, the FTSE 100 index is finally breaking higher after a period of consolidation.
The index bounced off support at 9661 before breaking above both the 100 and 200-day MAs and making a fresh high eyeing the ATH at 9943.
The question now is can the FTSE 100 reach the 10000 handle?
The period-14 RIS is just shy of overbought territory which could be a cause for concern.
FTSE 100 Index Daily Chart, December 23, 2025
Source: TradingView.com (click to enlarge)
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