October 2025: another good month

October was generally a similar month to September in the financial markets, and actually also as the whole of 2025 so far. Global stock prices rose, but most of all in Japan and emerging markets. Capital market interest rates declined slightly, which also resulted in positive returns for bonds.

Stock market performance in the first half of October was mixed, but continued their upward trajectory in the second half, almost without exception closing the month in positive territory. The biggest winners in October were emerging markets equities and Asian equities, with monthly returns of 6.1% for the MSCI Emerging Markets index and 5.5% for the MSCI Asia Pacific index. There were however widely varying performances between countries in both emerging markets and developed Asian stock markets. In Asia, Japan and South Korea performed remarkably well, with monthly returns of more than 10%, while stock markets in China and Hong Kong barely moved. Outside Asia, the Argentine stock market was a notable winner, with a monthly return of around 60%, mainly thanks to seat gains for supporters of President Milei in midterm elections and a ‘financing deal’ between Argentina and the US.

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