Regional Markets Mixed, Fed Rate Cut Hopes Underpin Sentiment

February 5, 2026
Global Markets
Reuters

Asian markets showed mixed performance today, with Singapore's Straits Times Index up 0.3% while Hong Kong's Hang Seng Index fell 0.5%. Investors are still weighing the possibility of future Federal Reserve rate cuts, which provides potential support for global markets. US futures were slightly positive.

KUALA LUMPUR, February 5, 2026 – Asian stock markets presented a mixed picture today as investors cautiously assessed the global economic outlook and the monetary policy trajectories of major central banks. Singapore's Straits Times Index (STI) rose 0.3% to 3280 points, buoyed by banking stocks and real estate investment trusts. However, Hong Kong's Hang Seng Index (HSI) fell 0.5% to 16050 points, primarily dragged down by technology shares and weaker Chinese economic data. Overnight, US equities closed mixed, with the Dow Jones Industrial Average posting a modest gain while the Nasdaq Composite edged lower. Market expectations for the Federal Reserve to begin cutting interest rates later this year are providing underlying support for risk assets, though the timing and magnitude of cuts remain uncertain. Malaysian equities were also influenced by regional sentiment, maintaining a cautious stance.
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