Asian markets showed mixed performance on February 5, with Hong Kong's Hang Seng Index rising 0.8% while Singapore's Straits Times Index dipped 0.2%. Market sentiment was primarily influenced by robust US employment data, which could lead the Federal Reserve to maintain higher interest rates for longer, impacting global capital flows and investor risk appetite.
On February 5, 2026, Asian stock markets displayed a mixed performance as investors digested robust US employment data released overnight. Hong Kong's Hang Seng Index rose 0.8% to close at 16,250 points, buoyed by gains in technology and financial stocks. However, Singapore's Straits Times Index edged down 0.2% to 3,150 points, partly due to investor concerns that the Federal Reserve might delay interest rate cuts. The US Labor Department reported much stronger-than-expected non-farm payroll figures for January, which boosted confidence in the US economy's resilience but also fueled expectations that the Fed could maintain higher interest rates for longer. This expectation puts pressure on capital flows to emerging markets. Japan's Nikkei 225 also saw a modest gain of 0.3%, while South Korean markets were closed for a holiday. Overall, regional markets are awaiting clearer signals on the global economic trajectory.
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