Regional Markets Mixed, Fed Rate Cut Hopes Boost Sentiment

February 6, 2026
Global Markets
Bloomberg

Southeast Asian markets showed mixed performance on Friday. Singapore's Straits Times Index edged up 0.2% to 3,210, while Hong Kong's Hang Seng Index fell 0.5% to 15,650. Investors closely watched the prospects of the US Federal Reserve cutting interest rates later in 2026, which provided some underlying support for risk assets despite regional divergences.

Southeast Asian equity markets displayed a mixed performance on Friday. Singapore's Straits Times Index edged up 0.2% to close at 3,210, supported by gains in banking and property counters. However, Hong Kong's Hang Seng Index fell 0.5% to 15,650, primarily weighed down by technology stocks and weaker-than-expected economic data from China. Investor sentiment was partially buoyed by expectations of potential interest rate cuts by the US Federal Reserve later in 2026, which provided some underlying support for regional risk assets. Nevertheless, geopolitical tensions and concerns over a global economic slowdown continued to temper market optimism to some extent.
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