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Global Stocks Soar: UK, US, Europe Lead Rally
30 Jan
Summary
- Stock markets in the UK, US, and Europe posted strong returns in early 2026.
- Japan and the UK saw impressive stock performances in 2025.
- Fund managers are shifting investments from the US to other regions like Japan and South Korea.
Global stock markets have begun 2026 with significant momentum, as the FTSE 100, S&P 500, and Germany's Dax all posted strong returns in the opening weeks. This performance builds on a highly successful 2025, during which the UK's FTSE 100 saw a 26% increase, Japan's Nikkei climbed 28%, and the US S&P 500 returned 18%.
As US markets, comprising over 70% of the global total, continue to dominate, active fund managers are increasingly looking beyond America's mega-cap stocks. They are actively seeking value and growth opportunities in other regions, with a particular focus on the UK, Japan, and South Korea.
The UK market, trading at a discount, offers opportunities in high-quality information services businesses like Relx and Experian. Japan, emerging from deflation, presents potential in automation and industrial technology, driven by corporate reforms and a weaker Yen. South Korea is also attracting attention due to its low valuations and government-led 'Corporate Value-up' initiatives, aimed at closing the 'Korea discount'.
