Regional Markets Decline, Hawkish Fed Comments Dampen Asian Sentiment

February 5, 2026
Global Markets
Bloomberg

On February 5, Asian stock markets generally declined, with Singapore's Straits Times Index falling 0.7% and Hong Kong's Hang Seng Index down 1.2%. Hawkish comments from US Federal Reserve officials intensified market concerns about prolonged high interest rates, impacting regional investor sentiment.

On February 5, 2026, Asian stock markets were broadly under pressure, with major regional indices declining. Singapore's Straits Times Index fell 0.7% to 3,180 points, and Hong Kong's Hang Seng Index plunged 1.2% to 15,650 points. Japan's Nikkei also recorded a 0.5% drop. Market sentiment was significantly impacted by recent hawkish comments from US Federal Reserve officials, which suggested that a high-interest-rate environment might persist longer than anticipated, exacerbating investor concerns about a global economic slowdown. Overnight, US stocks also faced pressure, with the Dow Jones Industrial Average falling 0.3%. This cautious mood spilled over into Asian markets, leading to decreased investor risk appetite and a flight to safe-haven assets. Analysts warn that regional markets may continue to face volatility in the near term amid increasing global macroeconomic uncertainty.
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