Asia Market Quick Take – 10 February, 2026

Asia Market Quick Take – 10 February, 2026

Key points:

• Macro: US Inflation expectations drop to 3.1% from 3.4%
• Equities: Dow notches another new high; Oracle gains 9.6% on upgrade
• FX: Dollar weakened as G10 currencies rose; AUD and CHF outperformed
• Commodities: Oil up for a second day; gold slipped after two-day gains
• Fixed income: Alphabet raised $20bn in its largest-ever US dollar bond sale

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Disclaimer: Past performance does not indicate future performance.

Macro: 

• US one-year inflation expectations dropped to 3.1% from December's 3.4%. Slower rises are expected in gas, medical care, rent, and home prices. Three and five-year inflation expectations remain at 3%. Earnings growth rose to 2.7%, with unemployment at 41.9%.
• Singapore raised its 2026 GDP growth forecast to 2-4%, up from 1-3%, due to continued AI-driven growth. Q4 GDP increased 6.9% year-on-year from AI-related electronics, pharmaceutical orders, and financial services, with 2025 growth at 5%, above the 4% forecast. The Ministry of Trade and Industry noted global economies outperformed expectations in Q4, 2025.
• Fed Governor Miran supports a reduced central bank balance sheet but advisesmaintaining asset purchase options for downturns. Bloomberg highlighted his view that reducing the balance sheet won't hinder the Fed's crisis response, emphasizing the balance between reduction and policy flexibility.
• Australia’s Consumer Sentiment Index fell 2.6% in February 2026 to a ten-month low of 90.5, following January's 1.7% dip, marking a third consecutive decline due to inflation worries and recent policy tightening after a 25bp rate hike.
• Investors are cautious due to AI concerns and China's stance on US Treasury exposure. January inflation data, forecasted at 0.1%, is expected February 13. SNB Chairman Schlegel emphasized tackling low inflation at a 0% rate, focusing on a 0-2% target, with FX interventions possible if needed.

Equities:

• US - US stocks advanced on Monday, with the Dow up 0.1% to a record high, the S&P 500 rising 0.5%, and the Nasdaq gaining 0.8%, supported by renewed strength in large‑cap tech and AI‑linked names. Chip and AI‑infrastructure stocks led the rebound, as Nvidia and Broadcom extended gains and Oracle surged 9.6% on an AI‑driven upgrade. Alphabet raises $20b via senior unsecured notes that drew over $100b of demand.
• EU - European equities opened the week higher, with the STOXX 50 up 0.9% and the STOXX 600 rising 0.5%, both hitting record highs. Sentiment followed global gains and a rally in Japan after Prime Minister Sanae Takaichi’s election victory. Healthcare outperformed, led by Novo Nordisk’s 8% jump and Novartis’ 0.9% rise after Hims & Hers withdrew its copycat weight‑loss drug. ASML, HSBC, AstraZeneca, SAP, and Rheinmetall also gained. UniCredit rose 5% on an upgraded profit outlook, while InPost surged over 13% on a takeover deal. Vinci slipped 1% and NatWest fell nearly 4%.
• HK - Hang Seng jumped 467 points, or 1.8%, to 27,027 on Monday, rebounding from the prior session’s drop as all sectors advanced. Sentiment improved following Wall Street’s strong finish, with the Dow closing above 50,000 for the first time amid a chip‑stock rebound and hopes of further Fed easing. Mainland markets also strengthened after brokers encouraged investors to hold positions ahead of Lunar New Year. China’s forex reserves rose to USD 3.399 trillion, the highest since 2015. Gold‑related stocks gained on continued PBoC buying, while Innovent, Minth Group, and Meitu rallied on company‑specific catalysts.

Earnings this week:

• Tuesday - Coca-Cola, CVS Health, Fiserv, Gilead Sciences, Ford, Spotify, Datadog, Upstart, Lyft, Robinhood, Honda
• Wednesday - Cisco, Humana, Kraft Heinz, Albemarle, Shopify, Applovin, Unity, Vertiv, HubSpot, QuantumScape
• Thursday - Brookfield, Pinterest, Arista, Rivian, Crocs, Coinbase, JFrog, Melco, Howmet Aerospace, Nebius, Softbank Group
• Friday - Moderna, Enbridge, Cameco, Advance Auto Parts, Wendy’s

FX:

• USD fell over 1% across two trading sessions following news that Chinese regulators advised financial institutions to reduce their holdings of US Treasuries. DXY fell below 97 level.
• JPY strengthened against the USD following remarks from Japan’s top currency official about vigilance in the foreign exchange market.USDJPY dropped over 1% to a session low of 155.52 before slightly paring its decline.
• GBP underperformed among G-10 currencies amid concerns over Prime Minister Keir Starmer's political future. GBPUSD rose 0.65% to 1.3698, maintaining above the 200-day moving average of 1.3432.
• AUD outperformed against the USD, trading between a low of 0.7178 and a high of 0.7243, bolstered by positive risk sentiment and gains in precious metals. 
• CHF also saw strong gains, trading below 0.7680 against USD, due to safe-haven demand amidst global uncertainties.

Commodities:

• Gold slipped after two days of gains amid profit-taking in a choppy market seeking a floor after the historic rout, falling as much as 1.4% in early trade and briefly below $5,000, about 10% off its 29 Jan peak but still higher year to date.
• Oil extended a two-day advance as Iran tensions added a risk premium; WTI held above $64 after a 1.7% two-session gain and Brent near $69, while the US warned US‑flagged ships to avoid Iranian waters in the Strait of Hormuz despite nuclear‑talk progress.

Fixed income:

• US Treasuries firmed to start a pivotal week, with yields about 1bp lower and the 10-year near 4.2% as traders await labour and inflation data; the front end and belly outperformed after NEC Director Kevin Hassett flagged potential labour-market softening, while an early steepening faded amid anticipation of Alphabet’s $20bn jumbo—part of $23.8bn in dollar supply.

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