Regional Markets Mixed, Fed Rate Cut Outlook Impacts Sentiment

February 22, 2026
Global Markets
Reuters

Southeast Asian stock markets showed mixed performance on Friday, with Singapore's Straits Times Index falling 0.3% while Indonesia's Jakarta Composite Index rose 0.2%. Investors are closely monitoring the timing of the US Federal Reserve's interest rate cuts, which is causing volatility across global markets and influencing regional sentiment.

On Friday, major Southeast Asian stock markets displayed mixed performance. Singapore's Straits Times Index fell 0.3% to close at 3180 points, primarily dragged down by banking and property stocks. Meanwhile, Indonesia's Jakarta Composite Index edged up 0.2% to 7350 points, supported by commodity-related shares. Regional investors are broadly focused on the US Federal Reserve's (Fed) monetary policy path, particularly market expectations for the timing of the first interest rate cut. Recent hawkish remarks from Fed officials have dampened expectations for a March rate cut, putting pressure on global risk assets. Hong Kong's Hang Seng Index also declined by 0.5%, reflecting a cautious sentiment towards the global economic outlook. This uncertainty is expected to continue influencing short-term volatility in regional markets.
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