Asia Market Quick Take – 05 February, 2026

Key points:

• Macro: ECB and BoE hold rates steady
• Equities: US stocks drop; tech and semiconductors lead declines, Amazon plunges 10%
• FX: USD rises on metal selloff; GBP falls post-dovish BoE decision
• Commodities: Silver extends losses after 20% plunge; breaks below $70
• Fixed income: Treasuries up, aided by BoE‑dovish front‑end gilts

------------------------------------------------------------------

Disclaimer: Past performance does not indicate future performance.

Macro:

• ECB held interest rates steady at its first 2026 meeting, with the main rate at 2.15%. It views eurozone inflation stabilizing at 2% amid geopolitical risks. President Lagarde noted the inflation outlook is stable but warned against reacting to individual data points due to increased uncertainty.
• US job openings fell by 386,000 to 6.542 million in December 2025, the lowest since September 2020, below the forecast of 7.2 million. Declines occurred in professional services, retail, and finance across all regions. Hires and separations stayed at 5.3 million, with minimal change in quits and layoffs.
• Japan's household spending fell 2.6% year-on-year in December 2025, below expectations for stable figures, following a 2.9% decline the previous month. Monthly spending dropped 2.9%, missing forecasts of a 1.3% decrease, reversing November's sharp 6.2% rise.
• Bank of England maintained the Bank Rate at 3.75% in February with a close 5-4 vote. Inflation is above 2% but expected to decline by April. Economic and labor market weaknesses persist, and further rate cuts may depend on new inflation data.
• US job quits rose to 3.204 million in December 2025, the highest in six months, mainly in retail (+87,000) and information (+28,000), but fell in professional services (-151,000). The quits rate stayed at 2%. Increases were seen in the Midwest (+59,000) and West (+13,000), with declines in the South (-50,000) and Northeast (-11,000).
• US initial jobless claims rose by 22,000 to 231,000, exceeding expectations. Continuing claims increased by 25,000 to 1,844,000 due to winter storm disruptions. Federal claims fell by 230 to 568 amid shutdown impacts.

Equities: 

• US - US equities fell for a third straight session, with the S&P 500 down 1%, the Nasdaq off 1.1% and the Dow losing 1%, as tech weakness broadened to consumer discretionary and communication services. Semiconductors also declined, led by Qualcomm’s 8.4% drop on a cautious outlook tied to softer memory demand. In after hours, Amazon fell 10% after setting capex at $200b this year vs expectations of $150b.
• EU - The STOXX 50 fell 0.8% and the STOXX 600 dropped 1.1%. The ECB held rates but President Lagarde downplayed softer inflation and euro concerns, reducing expectations for near‑term cuts, while the BoE also kept rates steady though some policymakers favored easing. Earnings disappointments weighed on sentiment: Shell missed profit estimates, BBVA tumbled 9%, Maersk warned of weaker 2026 earnings, and Rheinmetall cut guidance. In contrast, BNP Paribas rose 1.5% on higher return targets, and ArcelorMittal edged up after strong Q4 results.
• HK - Hang Seng rose 0.1% to 26,885 on Thursday, reversing early losses and extending gains for a third session as most sectors turned higher. Property, tech and consumer stocks rebounded after Chinese tax authorities dismissed speculation about broad industry tax changes. Baidu gained 2.7% on announcing its first dividend and a $5b buyback, while Xiaomi, Mixue, Pop Mart and Meituan also advanced.

Earnings this week:

• Friday: Centene, Canopy Growth, Cboe, Biogen, Nvent, Under Armour, Toyota

FX:

• USD gained against G10 peers as precious metals sold off, although US jobs data indicated labor market fragility with initial claims rising to 231k and Challenger layoffs seeing a significant January increase.
• GBP fell 0.8% to 1.3544 after the BoE’s near-cut decision fueled rate cut bets, widening gilt yield gaps and compounding pressure on Prime Minister Keir Starmer.
• EURUSD was down 0.2% as the ECB maintained rates, with the outlook described as balanced amidst resilient economic indicators.
• AUDUSD dropped 0.7%, impacted by a 16% plunge in silver.
• USDJPY rose 0.1% to 157.03, and Japanese government bonds ticked up post-solid 30-year auction.
• USDNOK climbed 1.3%, with Citigroup advocating a long CHFNOK trade, given potential correction risks in the Norwegian krone.

Commodities:

• Oil extended its largest one‑day drop in three weeks as planned Iran–US talks eased conflict risk, with WTI below $63 after Thursday’s 2.8% slide and Brent under $68; futures fell after President Trump said Iran was negotiating, then partly recovered as Saudi Arabia cut Asia prices less than expected, signalling confidence in demand.
• Silver extended losses after a 20% plunge, struggling to find a floor amid a historic rout; spot fell below $70 in early trade, more than 40% off the 29 Jan peak and erasing year‑to‑date gains in the worst turmoil since 1980, while gold was little changed.
• Copper extended losses as rising inventories and waning Chinese demand overshadowed earlier dip‑buying, following a 3.2% slide amid China spot weakness and a jump in LME Asian stockpiles, while industrial metals tracked silver’s near‑14% plunge as it struggled to find a floor after a historic rout.

Fixed income:

• Treasuries ended higher, led by the front end and belly, after softer labour data, bolstered by front‑end gilts on the BoE’s dovish tilt and a US equity selloff, while long‑end swap spreads tightened and the UK curve steepened as the BoE came within a vote of cutting, prompting dovish repricing in swaps.

For a global look at markets – go to Inspiration.

This content is marketing content and should not be considered investment advice. Trading financial instruments carries risks and historic performance is not a guarantee for future performance.
The instrument(s) mentioned in this content may be issued by a partner, from which Saxo receives promotion, payment or retrocessions. While Saxo receives compensation from these partnerships, all content is conducted with the intention of providing clients with valuable options and information.