Asian stocks began 2025 mostly in the red on Thursday after worries about US interest rates, tariffs, and China’s economy gave Wall Street the holiday blues for a fourth straight session.

Equities mostly had a bumper 2024 on the back of enthusiasm about artificial intelligence (AI), cuts in borrowing costs by central banks, and Donald Trump’s presidential election win.

The Dow ended the year up around 13 percent, while the S&P 500 and the Nasdaq — which have more tech stocks — climbed over 23 percent and around 29 percent respectively.

Shares started on a positive note, showing noticeable gains to close up 0.33 percent to 6,550.39 as the market gears up for a full year ahead, according to Regina Capital Development Corp. managing director Luis Limlingan.

Germany’s DAX added almost 20 percent, as did Japan’s Nikkei. The FTSE 100 gained nearly six percent, and France’s CAC 40 was the outlier, falling 2.2 percent.

Bitcoin breaks out

Bitcoin exploded more than 120 percent to break $100,000 while fellow cryptocurrency Ethereum rose over 40 percent. Gold, coffee and cocoa set new records.

“It was an exceptional year,” said Christopher Dembik, senior investment adviser at Pictet Asset Management.

But ahead of the New Year’s Day holiday, US stocks sank Tuesday, although European equities advanced.

The Dow Jones lost 0.1 percent, the S&P 500 declined 0.4 percent and the Nasdaq gave up 0.9 percent.

On Thursday, shares in Hong Kong and Shanghai fell more than two percent. Tokyo remains closed until Monday.

Shares in Sydney edged up, helped by US equity futures pointing higher.

Political pall hangs over Korea

KOSPI ended largely unmoved with political uncertainty continuing to grip South Korea, as impeached President Yoon Suk Yeol remained defiantly inside his residence, resisting arrest for a third day.

“The Republic of Korea is currently in danger due to internal and external forces threatening its sovereignty, and the activities of anti-state elements,” Yoon said in a statement.

In Japan, Nippon Steel was not available for comment after it reportedly sent new proposals to the White House to try to save its takeover of US Steel.