Regional Markets Mixed as Fed Rate Cut Outlook Impacts Asian Sentiment

March 15, 2026
Global Markets
Reuters

Southeast Asian markets showed mixed performances last week, with Singapore's Straits Times Index gaining 0.5% while Hong Kong's Hang Seng Index fell 1.2%. Uncertainty surrounding the timing of the US Federal Reserve's interest rate cuts continued to influence regional investor sentiment. A stronger US dollar and fluctuating commodity prices also contributed to the divergent market movements across Asia, as investors weighed global economic signals.

Last week, major Southeast Asian stock markets displayed divergent trends. Singapore's Straits Times Index (STI) gained 0.5% to close at 3250 points, benefiting from improved local economic data. However, Hong Kong's Hang Seng Index (HSI) fell 1.2% to settle at 16800 points, primarily impacted by weaker Chinese economic data and geopolitical tensions. Market attention remains focused on the US Federal Reserve's (Fed) interest rate cut trajectory, with its uncertainty causing fluctuations in regional capital flows and risk appetite. Investors are closely monitoring upcoming US inflation data and statements from Fed officials for clues on future monetary policy, which will have a profound impact on Asian markets.
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