Stocks retreat as traders trim risk ahead of central bank meetings and key data releases
A stock quotation board reflected in window glass near Tokyo on December 11, 2025, illustrating market activity ahead of a busy week for policy makers. For reference, Reuters coverage accompanies this note.
Summary
- Central banks including the European Central Bank, Bank of Japan, Bank of England, Riksbank, and Norges Bank are due to convene this week.
- U.S. data releases, including November jobs and inflation figures, were delayed but are set to resume.
- China Vanke bondholder vote renews concerns about the property sector.
SINGAPORE, Dec 15 (Reuters) — Asian equities pulled back early Monday as investors reduced risk exposure at the start of a week packed with central-bank decisions and important data releases.
The MSCI Asia-Pacific index outside Japan declined about 0.6%, led by South Korean shares which fell as much as 2.7%, making it one of the year’s notable laggards despite a strong performance earlier.
We’re entering the final trading week of 2025, with many investors closing books and winding down for the year, noted Chris Weston, head of research at Pepperstone Group in Melbourne. “Some participants have already finished,” he added. “Liquidity will thin this week compared with typical conditions, but should still be sufficient for meaningful trades without triggering outsized price swings. Next week, liquidity will likely dry up further.”
S&P 500 e-mini futures edged up 0.1%, and the U.S. 10-year Treasury yield remained around 4.184%, as traders awaited a slate of economic data and central-bank decisions.
Among the policy meetings this week, the Bank of Japan is anticipated to raise rates by 25 basis points to 0.75%, while the Bank of England might enact a similar 25-basis-point cut to 3.75%. The European Central Bank is expected to hold rates, with Sweden’s Riksbank and Norway’s Norges Bank also in a holding pattern.
Investors will scrutinize a batch of economic data that had been postponed by the U.S. government shutdown, including the November jobs report and the monthly consumer price index.
In Japan, stocks managed to hold gains, with the Topix steadier as the Bank of Japan’s Tankan survey showed a four-year high in large manufacturers’ sentiment, suggesting the economy is maintaining resilience despite higher U.S. tariffs.
The yuan’s offshore market remained steady against the dollar, trading around 7.0532 yuan, a level near its strongest in over a year ahead of November housing and activity data due later today.
Friday’s news that China Vanke, a state-backed property developer, failed to secure bondholder approval to extend a bond payment by one year raised fresh concerns about the debt-laden property sector and the risk of defaults.
In commodities, Brent crude rose about 0.3% to $61.30 per barrel after Imperial Oil reported a fire alert at its Ontario refinery. Russia later stated that an oil refinery in Afipsky endured no damage from a Ukrainian drone attack.
On the geopolitical front, U.S. envoy Steve Witkoff said significant progress had been made in peace talks aimed at ending the Ukraine war during a meeting in Berlin.
Gold prices fluctuated, pulling back slightly after a four-day rally that neared the all-time high of $4,381.21 per ounce. Spot gold traded around $4,299.69.
Cryptocurrency markets remained under pressure for a fourth straight day, with bitcoin down 0.3% to around $88,235.59 and ether down about 0.5% near $3,065.62.
Reporting by Gregor Stuart Hunter; Editing by Shri Navaratnam
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