That marks the highest reading since July last year with a modest improvement seen especially in Germany. Sentiment towards Europe's largest economy nudged up by 6.3 points to -16.4, with the expectations component in particular sending a positive signal with an increase of 6.8 points.

China's record run of exports, driven by diversification in shipment destinations, is expected to have slowed in the final month of 2025, and the outlook for the coming year depends on manufacturers' ability to expand further into new markets.

Most Asian stocks rose on Tuesday as technology stocks pushed higher on sustained optimism over artificial intelligence, with Japan’s Nikkei 225 index hitting a record high in catch-up trade.

Federal Reserve Bank of New York President John Williams said Monday he expects a healthy economy in 2026 and indicated he sees no near-term reason to cut interest rates.

U.S. consumer prices likely accelerated in December as some of the distortions related to the government shutdown that had artificially lowered inflation in November unwound, which would cement expectations of the Federal Reserve leaving interest rates unchanged this month.

Oil prices extended gains in Asian trading on Tuesday, rising for a fourth consecutive session amid supply disruption risks from Iran, where intensifying anti-government protests have stoked geopolitical fears.