Key Highlights
- 2025 saw significant gains in global stock markets, particularly for non-US stocks.
- The S&P 500 achieved its third consecutive year of double-digit returns, while MSCI ACWI Ex-US index had its strongest performance since 2009.
- South Korea’s KOSPI witnessed a remarkable gain of nearly 76%, driven by strong demand for AI-related products from SK Hynix and Samsung Electronics.
- The Nikkei 225 in Japan saw an increase of about 28%, while European markets performed strongly, with the FTSE 100 and DAX 40 heading into 2026 up more than 20%.
Global Stock Market Performance in 2025: A Year of Surprising Gains
2025 was a standout year for global stock markets, with significant gains observed across various regions. The momentum started on Wall Street, where the benchmark S&P 500 experienced its third consecutive year of double-digit returns. However, it was non-US stocks that truly captured the spotlight, registering their best performance since 2009.
Strong Gains in Non-US Markets
The MSCI ACWI Ex-US index, which tracks over 40 markets outside the United States, showcased its strongest return since the global financial crisis. By year-end, it was on track to finish with a gain of around 29%, significantly outperforming the S&P 500’s more than 17% return. Analysts attributed this strong performance to several factors, including uncertainty caused by Donald Trump’s trade policies, concerns over valuations in Silicon Valley tech firms, and advancements in artificial intelligence (AI) from China.
South Korea: A Beacon of Growth
In Asia, South Korea emerged as a key performer. The KOSPI index, which measures the overall performance of the Korean stock market, saw an impressive gain of nearly 76%. This was largely driven by the tech giants SK Hynix and Samsung Electronics. Both companies experienced substantial growth, with SK Hynix’s shares rising some 280% and Samsung Electronics’ up by 125%, fueled by robust demand for their AI-related products.
Japan and Europe: Steady but Strong
In Japan, the Nikkei 225 index also performed well, closing with a gain of about 28%. Meanwhile, European markets saw strong finishes as well. The FTSE 100 in London and the DAX 40 in Frankfurt were both on track to close the year up more than 20%, heading into 2026.
Analysts like Michelle Gibley from Charles Schwab suggested that international stocks could be poised for another strong year. “Earnings and economic growth are expected to accelerate, and stocks are attractively valued compared with those in the S&P 500 index,” she noted in a recent analysis.
Implications for Future Markets
The robust performance of non-US markets in 2025 signals a shift away from the decade-long dominance of US stocks. This trend could continue as global economic and political landscapes evolve, potentially offering new investment opportunities to investors seeking diversification.
As we look ahead into 2026, the continued growth of AI and technology sectors is likely to remain a key driver for stock market performance across many regions. The coming year will be crucial in determining whether this trend can be sustained, especially as major economies continue to navigate complex global challenges.
Overall, the financial markets’ performance in 2025 was nothing short of blockbuster, and it sets the stage for exciting developments in the years ahead.
