Regional Markets Mixed as Fed Rate Cut Expectations Influence Asia

February 5, 2026
Global Markets
Reuters

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%. Uncertainty surrounding the timing of the US Federal Reserve's interest rate cuts continues to influence regional market sentiment, leading to cautious trading across various bourses.

Asian stock markets displayed a mixed performance today, primarily influenced by the uncertainty surrounding the US Federal Reserve's future interest rate trajectory. Singapore's Straits Times Index declined 0.3% to 3,180 points, largely dragged down by technology and property stocks. Concurrently, Hong Kong's Hang Seng Index rose 0.5% to 16,050 points, benefiting from expectations of further economic stimulus measures in China. On the US front, the Dow Jones Industrial Average closed slightly higher overnight, but investors remained cautious ahead of upcoming US employment data, which could sway the Fed's decisions. The Malaysian market also felt this regional sentiment; although the KLCI edged up, overall trading volume indicated investors are awaiting clearer signals. Analysts anticipate that Asian markets may continue to exhibit volatility until the Fed's policy stance becomes more definitive.
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