Major Asia-Pacific equity markets closed lower on Monday, December 15, as investors reacted to weak economic signals from China and a sharp sell-off in U.S. artificial intelligence stocks late last week.
South Korea’s benchmark Kospi led regional losses, sliding 2.16 per cent as heavy selling hit major semiconductor firms. Samsung Electronics fell 3.3 per cent, while SK Hynix dropped more than 4 per cent, reflecting similar declines among U.S. chipmakers.
Japan’s Nikkei 225 declined 1.3 per cent, Australia’s S&P/ASX 200 shed 0.66 per cent, and Hong Kong’s Hang Seng Index closed 0.79 per cent lower.
Market sentiment weakened following the release of China’s November economic data, which indicated fragile domestic demand. Retail sales rose just 1.3 per cent year on year, sharply missing the Reuters forecast of 2.8 per cent and slowing from October’s 2.9 per cent growth. Industrial output increased 4.8 per cent, also falling short of expectations.
Asian stocks tumbled on Monday, weighed by a Wall Street selloff and fresh Chinese property worries and as investors reined in risk-taking at the start of a week loaded with big central bank decisions and economic data. https://t.co/IKO8a639xv
— Reuters China (@ReutersChina) December 15, 2025
In contrast, Japan offered a rare positive signal. The Bank of Japan’s closely watched Tankan survey showed business confidence among large manufacturers rose to +15 in the fourth quarter, marking its strongest level in four years and aligning with analyst projections.
The upbeat data arrive ahead of a crucial Bank of Japan policy meeting later this week, at which policymakers are widely expected to raise interest rates.
#Japan's #Nikkei sinks as tech shares track US peers lower#ETMarkets https://t.co/xMry5Mbacf
— ETMarkets (@ETMarkets) December 15, 2025
Regional markets also tracked Wall Street’s sharp decline on Friday. The S&P 500 fell 1.07 per cent, marking its worst session in three weeks, while the tech-heavy Nasdaq Composite dropped 1.69 per cent. Broadcom led losses with an 11.4 per cent plunge, intensifying concerns over the sustainability of the AI-driven rally.
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Looking ahead, investors remain focused on central bank decisions, with the Bank of Japan’s rate announcement and the U.S. Federal Reserve’s updated economic projections due in the coming days. Analysts expect the AI sector’s durability rebound and the pace of China’s consumer recovery to continue to shape near-term market sentiment.