Asian Markets Generally Under Pressure, Regional Economic Outlook Cautious

February 7, 2026
Global Markets
Bloomberg

Asian stock markets generally declined on Friday, with investors cautious about slowing global economic growth and China's economic data. Hong Kong's Hang Seng Index fell 0.5%, and Singapore's Straits Times Index edged down 0.2%. This regional cautious sentiment also influenced the Malaysian market.

Major Asian stock markets generally showed weakness on Friday, reflecting investor concerns over the global economic growth outlook and a cautious stance on China's economic data. Hong Kong's Hang Seng Index fell 0.5% to close at 15,600 points, while Singapore's Straits Times Index also edged down 0.2%. Japan's Nikkei 225 was pressured by a stronger yen, declining by 0.8%. This regional cautious sentiment partly influenced the Malaysian stock market, although the FBM KLCI ultimately closed marginally higher, trading volume remained subdued. Analysts pointed out that the adjustment in US Federal Reserve rate cut expectations and geopolitical tensions were key factors contributing to the widespread pressure on Asian markets. Investors are awaiting clearer signals regarding the health of the global economy, especially with low trading appetite ahead of the Chinese New Year holidays.
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