Mixed Performance in Asian Markets, Fed Rate Cut Expectations Influence Regional Sentiment

February 23, 2026
Global Markets
Reuters

Asian stock markets showed mixed performance on Monday, with Hong Kong's Hang Seng Index down 0.5% while Singapore's Straits Times Index gained 0.2%. Markets continued to digest US inflation data and re-evaluate the timing and extent of Federal Reserve rate cuts, influencing regional investment sentiment.

Major Asian stock markets traded with caution on Monday, showing mixed performances. Hong Kong's Hang Seng Index fell 0.5%, primarily dragged down by technology and property sectors. In contrast, Singapore's Straits Times Index edged up 0.2%, supported by banking stocks. Investors continued to monitor US economic data, especially inflation reports, which led to a re-evaluation of the Federal Reserve's (Fed) rate-cutting path. Hawkish remarks from Fed officials further cooled expectations for a March rate cut, creating some pressure on risk assets globally. The Malaysian market was also influenced by this regional sentiment, though local factors like banking stock performance provided some cushion.
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