Regional Markets Mixed as Fed Rate Cut Hopes Influence Asia

February 6, 2026
Global Markets
Bloomberg

Southeast Asian stock markets showed mixed performance today. Singapore's Straits Times Index fell 0.3%, while Hong Kong's Hang Seng Index gained 0.5%. Investors are weighing uncertainties surrounding the US Federal Reserve's rate cut timing, which is influencing risk appetite across Asian markets. A stronger US dollar is also pressuring regional currencies.

Southeast Asian stock markets displayed a mixed performance today, as investors closely monitored the US Federal Reserve's monetary policy outlook. Singapore's Straits Times Index (STI) fell 0.3% to 3,180 points, dragged down by banking stocks. In contrast, Hong Kong's Hang Seng Index (HSI) gained 0.5%, closing at 15,850 points, partly on expectations of further Chinese economic stimulus. Volatility in US Treasury yields and a stronger US dollar have exerted some pressure on Asian emerging markets, leading to a general weakening of regional currencies. Analysts noted that uncertainty regarding the timing of Fed rate cuts will continue to dominate global market sentiment, and Asian markets may remain volatile in the short term. The Malaysian market is also influenced by regional sentiment, though local factors like corporate earnings and commodity prices also play a role.
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