Regional Markets Mixed, Fed Rate Cut Expectations Influence Asian Equities

February 5, 2026
Global Markets
Reuters

Asian stock markets showed mixed performance today, with Singapore's Straits Times Index gaining 0.3% while Hong Kong's Hang Seng Index fell 0.5%. Markets were influenced by uncertainty surrounding the timing of potential US Federal Reserve rate cuts, as investors weighed global economic data.

On February 5, 2026, Southeast Asian and North Asian stock markets displayed mixed performance today, reflecting diverse interpretations among investors regarding the global economic outlook and monetary policy trajectory. Singapore's Straits Times Index (STI) rose 0.3% to close at 3,210 points, primarily boosted by banking stocks and real estate investment trusts. However, Hong Kong's Hang Seng Index (HSI) fell 0.5% to close at 15,820 points, with technology stocks facing pressure. Market attention is largely focused on the timing of potential US Federal Reserve (Fed) rate cuts. Recent US economic data, slightly stronger than anticipated, has tempered expectations for a March rate cut, introducing short-term volatility to Asian equities. Investors are seeking clearer signals to ascertain the future direction of global liquidity conditions.
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