KEY POINTS
  • The Asia Pacific region is expected to outperform the global economy in terms of growth, with the IMF expecting 4.2% growth from the region in 2024, compared to 2.9% globally.
  • Japan's Nikkei 225 was the best performing index for 2023, while Hong Kong's Hang Seng Index was the worst performing.
A screen displays the Nikkei 225 Stock Average figure at the Tokyo Stock Exchange (TSE), operated by Japan Exchange Group Inc. (JPX), in Tokyo, Japan, on Monday, Oct. 30, 2023. The expansion of Israel's ground operations in Gaza added more pressure to global markets as investors prepare for a busy week packed with major central bank decisions and a high-stakes announcement of US bond sales. Photographer: Akio Kon/Bloomberg via Getty Images

Asia markets saw a volatile year in 2023, with inflation, rising interest rates and China's sputtering recovery dragging down growth last year.

Japan's Nikkei 225 led the region in terms of market performance in 2023, and gained about 28% last year, according to data from Refinitiv. Japanese stocks have been supported by improving corporate results, as well as growing optimism that the Bank of Japan may finally end its ultra easy monetary policy after decades of near-zero interest rates.