Asia Market Quick Take – 03 February, 2026

Key points:

• Macro: US reduces India’s general tariffs to 18% from 25%
• Equities: Palantir rises 5% after earnings beat
• FX: USD continues to strengthen
• Commodities: Commodities fall across the board
• Fixed income: Treasuries flat as investors await Warsh’s policy views

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Disclaimer: Past performance does not indicate future performance.

Macro:

• US is removing a 25% tariff on Indian imports linked to Russian oil purchases and reducing the general tariff to 18%, per a White House official. President Trump announced these changes post-discussion with Indian PM Modi. He initially imposed a 25% tariff in August due to India's buying of Russian oil, later increasing tariffs to 50%.
• US ISM Manufacturing PMI increased to 52.6 from 47.9 in January, signaling the first manufacturing expansion in 12 months. Gains were seen in new orders, production, and supplier deliveries. Price pressures remained stable. The rise may be driven by holiday reorders and tariff concerns.
• Canada's Manufacturing PMI increased to 50.4 from 48.6 in January, ending an 11-month downturn. Output stabilized, staffing levels saw a slight gain despite marginal new order declines. Input inflation hit a five-month high, prompting higher output charges. Future output confidence rose to a three-month high.
• In January 2026, the US Manufacturing PMI rose to 52.4 from 51.8, with output growth strong despite a seventh-month decline in export orders due to tariffs. Job growth slowed, costs rose, and selling prices surged, while business confidence remained steady amid risks.

Equities: 

• US - S&P 500 rose 0.6% to a record, with the Dow up 1.1% and Nasdaq 100 up 0.7%. Stocks gained as last week's metal and crypto selloff eased, refocusing on earnings. Tech led the rise; Apple, AMD, and Micron saw strong gains. Alphabet and Amazon rose. Oracle dipped, Nvidia fell 2% amid OpenAI investment uncertainty. Palantir beats earnings and up 7.5% post market. Disney shares fell 7% despite beating earnings expectations, driven by concerns over softer international park attendance and upcoming prelaunch costs.
• EU - DAX 40 rose 1.1%, with European markets stabilizing. Improved manufacturing and easing US-Iran tensions boosted sentiment ahead of earnings and the ECB decision. Kevin Warsh's Fed chair nomination was considered for central bank independence. SAP, Siemens Energy, and Deutsche Telekom advanced, while defense stocks like Hensoldt fell sharply.
• HK - Hang Seng fell 612 points, or 2.2%, to 26,776. Major sectors dropped due to AI valuation concerns and metals volatility. In China, stocks fell on weak data and auto sales. Zhaojin Mining dropped 9%, while Sands China rose 3.6% on strong Macau gaming revenue.

Earnings this week:

• Tuesday: PayPal, AMD, PepsiCo, Supermicro, Merck, Chipotle, Pfizer, Lumentum, Amgen, ADM, EQT
• Wednesday: Uber, Alphabet, Eli Lilly, Novo Nordisk, ARM, Boston Scientific, Qualcomm, Johnson Controls, AbbVie, Snap, Symbotic, Amcor, CME Group, UBS
• Thursday: ConocoPhillips, Amazon, Energizer, Strategy Blocks, Shell, Roblox, Reddit, Cigna, Estee Lauder, Affirm
• Friday: Centene, Canopy Growth, Cboe, Biogen, Nvent, Under Armour, Toyota

FX:

• USD traded mixed against G-10 peers after erasing early gains, with precious metals and equities rebounding from intraday lows. CHF leading losses as risk sentiment improved.
• GBP, NZD, and AUD outperformed. Focus shifts to the RBA, expected to hike the Cash Rate by 25bps to 3.85%, following strong jobs and inflation data. Markets show a 76% chance of a hike. AUDUSD is at 0.6944, up from 0.6909 lows.
• USDNOK trimmed gains from 0.9% to 0.3%, trading at 9.6692. USDJPY was little changed at 154.80, with Prime Minister Sanae Takaichi noting a weak yen benefits exports.

Commodities:

• Commodities dropped as geopolitical risks eased. WTI crude fell over 4.5% to $62.2 per barrel, with OPEC+ output stable.
• Natural gas plunged 21% to $3.42 due to milder weather forecasts.
• Gold declined 4% to below $4,700 after Warsh's Fed Chair nomination boosted the dollar.
• Silver fell 8% to $78, pressured by expectations of a hawkish Fed stance, though deficits support it. Copper fell to almost a low of $5.5 per pound.

Fixed income:

• Treasuries stayed mostly unchanged ahead of the January ISM Manufacturing PMI report. Yields rose after better-than-expected results showed the first expansion in 12 months. The partial shutdown delayed JOLTS and NFP reports. Attention turns to Kevin Warsh's policy views amid uncertainty from few public statements.

For a global look at markets – go to Inspiration.

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