Mixed Performance in Asian Markets as Fed Rate Cut Hopes Influence Regional Sentiment

February 23, 2026
Global Markets
Reuters

Asian stock markets showed mixed performance on Monday, with Hong Kong's Hang Seng Index declining while Singapore's Straits Times Index rose. Investors are weighing uncertainties surrounding the timing of the U.S. Federal Reserve's interest rate cuts, impacting regional capital flows and risk appetite across various economies.

Major Asian stock markets exhibited mixed trends on Monday, reflecting divergent investor views on the global economic outlook and the U.S. Federal Reserve's monetary policy path. Hong Kong's Hang Seng Index declined by 0.8%, primarily dragged down by technology and property counters. Meanwhile, Singapore's Straits Times Index gained 0.3%, buoyed by strength in its financial and industrial sectors. Market sentiment continues to be influenced by expectations surrounding the Fed's interest rate cuts, but recent strong U.S. economic data has introduced greater uncertainty regarding the timing of such moves. This has led to fluctuating regional capital flows and impacted investor appetite for risk assets. The Malaysian market also felt these regional sentiments, with cautious trading despite some local buying support.
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