Kim Jong Un oversaw tests of long-range strategic cruise missiles

In Asia, North Korean leader Kim Jong Un oversaw tests of long-range strategic cruise missiles on December 28, 2025, with the launches detected by South Korea and described by Pyongyang as demonstrations of its nuclear deterrent capabilities amid heightened regional tensions. Meanwhile, severe winter storms continued to batter parts of East Asia, including China, South Korea, and Japan, causing widespread travel disruptions, heavy snowfall, strong winds, and warnings for near-blizzard conditions in affected areas. Economically, South Korea celebrated a milestone as its annual exports surpassed $700 billion for the first time, driven largely by strong demand for AI-related semiconductors, while broader Asian stock markets showed gains amid optimism over Federal Reserve rate cut expectations and AI investments.

In Europe, ongoing discussions surrounding a potential peace deal to end the Russia-Ukraine war dominated headlines, following a meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy at Mar-a-Lago on December 28, where both sides noted progress toward security guarantees for Ukraine but acknowledged remaining thorny issues, including territorial disputes and the status of the Zaporizhzhia nuclear power plant. European leaders participated in related calls, with the EU expressing readiness to contribute significantly to any security framework, though Russian officials remained skeptical of proposed ceasefires. Separately, European defense stocks experienced declines as markets reacted to the peace talk developments, while broader indices remained relatively stable.

In the USA, financial markets saw a pause in the year's rally, with a selloff in major tech stocks like Tesla and Nvidia contributing to modest declines in the S&P 500 and Nasdaq amid year-end position trimming and lingering uncertainty over economic policies. Attention also focused on international diplomacy, particularly the Trump-Zelenskyy talks and their implications for U.S. involvement in Ukraine negotiations, alongside preparations for potential further meetings involving European allies in January. Winter weather remained a concern in parts of the country, with heavy snow and blizzard conditions reported in regions like Minnesota, posing risks to travel as the year drew to a close.