Asian Markets Broadly Up on Dovish Fed Stance, China Stimulus Hopes

February 5, 2026
Global Markets
Bloomberg

Asian stock markets largely traded higher today, buoyed by expectations of a more dovish stance from the US Federal Reserve and optimism surrounding potential economic stimulus measures from China. This positive regional sentiment provided a significant lift to various indices, including Malaysia's KLCI.

Asian stock markets broadly registered gains today, primarily boosted by two key factors: first, market expectations of a potentially more dovish stance from the US Federal Reserve, especially after recent moderation in US inflation data; and second, investor optimism surrounding the possibility of more economic stimulus measures from the Chinese government. Japan's Nikkei 225 surged 1.1%, while South Korea's KOSPI index rose 0.9%. Hong Kong's Hang Seng Index also climbed 0.7% in afternoon trading. This positive regional sentiment provided a favorable external environment for the Malaysian stock market, contributing to the KLCI's upward movement. Singapore's Straits Times Index also recorded a 0.6% gain, demonstrating the interconnectedness of regional markets.
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