Key Points Taiwan emerges as Asia’s best-performing stock market in 2024, gaining 28.85% as of Dec. 23 In contrast, South Korea was the worst, losing 8.03% over the year. Analysts say Trump’s presidency and China’s economy will be key to determining the direction of the Asian markets in 2025. Asia-Pacific stocks had a good run in 2024, with most major markets ending the year in positive territory, as the region’s central banks eased monetary policy while an AI boom lifted tech stocks. Taiwan’s Taiex led gains in the region, up 28.85% as of Dec. 23, while Hong Kong’s Hang Seng Index came in second with 16.63%. Asia successfully reduced inflation faster than the rest of the world, said Mike Shiao, chief investment officer for Asia ex-Japan at investment management firm Invesco, paving the way for monetary easing. “With the Federal Reserve now having started its easing cycle, Asian countries will have more room to lower interest rates in 2025,” he said in a note. An easier monetary policy tends to boost equities. Kim also said that the government will play a key role in the country’s markets, highlighting that potential reforms in corporate regulations, fiscal stimulus measures and the possibility of further rate cuts by the Bank of Korea could help the business environment and stimulate domestic demand.