Regional Markets Decline Broadly on US Hawk Talk, China Data

February 5, 2026
Global Markets
Reuters

Southeast Asian stock markets broadly declined today, influenced by hawkish statements from the US Federal Reserve and weaker-than-expected economic data from China. Singapore's Straits Times Index fell 0.7%, while Hong Kong's Hang Seng Index dropped 1.2%. Investors are concerned about the potential for prolonged high interest rates in the US and the slowing growth momentum in China, which could impact regional trade and investment flows.

Southeast Asian stock markets generally saw declines today, influenced by two major external factors. Firstly, recent hawkish remarks from US Federal Reserve officials, suggesting interest rates might remain higher for longer, intensified investor concerns about a global economic slowdown. Secondly, weaker-than-expected manufacturing Purchasing Managers' Index (PMI) data from China further dampened market sentiment. Singapore's Straits Times Index fell 0.7% to 3,180 points, while Hong Kong's Hang Seng Index plunged 1.2% to 15,850 points. This regional pessimism also spilled over into Malaysia, contributing to the pressure on the KLCI. Investors are closely monitoring the next moves from global central banks and the pace of China's economic recovery to gauge future market direction.
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