Asia Market Quick Take – 09 February, 2026

Key points:

• Macro: Takaichi's party wins two-thirds majority in Japan's lower house
• Equities: Dow hits record 50,000; DBS misses earnings but raises dividend
• FX: JPY rises slightly post-election, USDJPY trades near 156.80
• Commodities: Gold tops $5,000; silver nears $80
• Fixed income: JGB futures fell; US Treasury yields edged higher for a second straight session

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Disclaimer: Past performance does not indicate future performance.

Macro:

• Japan's Prime Minister Sanae Takaichi's ruling party clinched a landmark post-war victory, securing a two-thirds super majority in the lower house.
• U.S. Treasury Secretary Scott Bessent highlighted Chinese traders' influence in recent volatile gold price swings, aligning with hedge funds cutting bullish wagers on gold to their lowest since October.
• Fed Vice Chair Jefferson stated that the current monetary policy is well-positioned for future conditions and emphasized preventing further labor market weakening. Fed's Daly is open to interest rate decisions, considering possible cuts in 2026 depending on inflation and labor market data. Meanwhile, House Minority Leader Jeffries announced that Democrats will not pass further funding for the Department of Homeland Security without ICE reforms.
• Morgan McSweeney, Chief of Staff to Labour’s Keir Starmer, resigned amidst controversy over Peter Mandelson's appointment as UK ambassador to Washington, linked to Jeffrey Epstein.

Equities: 

• US - The Dow hit a record high Friday, jumping 2.5% to reach 50,000 as US stocks rebounded after a sharp tech-driven selloff, with dip buying returning as concerns over AI disruption and deleveraging eased. S&P 500 rose 1.9% and the Nasdaq gained 2.1%, led by semiconductors, with Nvidia, Broadcom, and AMD up more than 7%. Cyclicals outperformed, highlighted by strong gains in Caterpillar and Goldman Sachs. Hims and Hers fell 2% after dropping plans for the Wegovy knock off pill while Novo Nordisk rallied 10%.
• EU -Eurozone’s STOXX 50 rose 1.2% and the STOXX 600 gained 0.9%. ASML climbed nearly 4%, recovering part of the week’s losses, while Vinci jumped almost 10% after beating Q4 earnings expectations. Rheinmetall added 2% as analysts revised their interpretation of guidance, and Siemens and Siemens Energy also bounced. In contrast, Stellantis tumbled nearly 20% after warning of a €22 billion restructuring hit tied to accelerating EV and hybrid development.
• SG - STI fell 0.8% tracking Wall Street losses as STI retraces from a strong start in 2026. DBS Group reported earnings this morning that missed estimates, with earnings for Q4 at $2.36b vs $2.59b est, falling 10% from $2.52b a year ago. However, they raised Q4 dividend by 6 cents to 66 cents. Together with capital return dividend of 15 cents, total dividend is 81 cents.

Earnings this week:

• Monday - Apollo, CNA, Cliffs, Kyndryl, Amkor Technology, Medpace
• 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:

• JPY edged higher to 156.80 against the USD after Japan's election, yet investors expect continued weakening. Officials aim to stabilize the currency amid fiscal stimulus plans. While boosting exports, a weaker yen strains household budgets and risks further depreciation.
• USD weakened as global risk sentiment improved and the S&P 500 rose by 2%. AUD surged by 1.3% with AUDUSD reaching 0.7016, reflecting gains in commodities. NOK saw a 1.3% drop, leaving USD/NOK at 9.6785 on Friday. NZD increased by 1.2% to 0.6019. EUR rose by 0.4% to 1.182, and GBP gained 0.7% to 1.3619. Looking ahead, market focus turns to next week's CFTC report and anticipated inflation and non-farm payroll data.

Commodities:

• Gold climbed above $5,000 an ounce, rising as much as 1.6% in early trade as dip buyers returned and PM Sanae Takaichi’s landslide win reinforced expectations of looser fiscal policy and sustained yen pressure; despite Friday’s close about 11% below the 29 Jan record, it remains up 15% year to date. Silver rose 2.6% to $79.89, with platinum and palladium also higher.
• Oil slipped as Middle East tensions eased, reducing near-term supply risks; Brent fell towards $67 after almost a 4% weekly loss, WTI near $63, as Iran and the US held Oman talks on the Islamic Republic’s nuclear program that Tehran called “a step forward.”

Fixed income:

• US Treasuries fell, partly unwinding Thursday’s curve-steepening on strong preliminary February Michigan sentiment, with yields just off session highs late as equities drew dip buyers and edging higher for a second straight session ahead of key data. Japan’s December balance-of-payments showed funds net selling French bonds for a third month—the longest since January 2025—while buying the most US sovereign debt in three months; JGB futures fell after PM Sanae Takaichi’s historic win heightened fiscal concerns.

For a global look at markets – go to Inspiration.

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