Asian regional markets displayed mixed performance today, with Singapore and Hong Kong experiencing slight declines following hawkish comments from the US Federal Reserve. In contrast, the Malaysian market showed relative resilience, supported by domestic factors. Investors are closely monitoring global central bank policies and their potential impact on capital flows and regional economic stability, leading to cautious trading across the board.
On February 5, 2026, Asian regional stock markets displayed divergent performances. Singapore's Straits Times Index fell 0.3%, and Hong Kong's Hang Seng Index closed down 0.5%, primarily influenced by hawkish comments from US Federal Reserve officials overnight, which intensified market concerns about a prolonged high-interest-rate environment in the US. However, the Malaysian stock market showed relative resilience, with the Kuala Lumpur Composite Index bucking the trend to gain 0.45%. Analysts noted that Malaysia's market resilience is partly attributed to its robust domestic economic fundamentals and sustained support from local institutional investors. Despite external uncertainties facing regional markets, specific sectors in Malaysia, such as banking and plantations, performed well, providing market support. Investors are closely monitoring global central bank policy directions and geopolitical risks' impact on regional economies.
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