Asia Market Quick Take – 11 February, 2026

Key points:

• Macro: US retail sales disappoint at 0% vs 0.4% expected
• Equities: Dow closes at fresh high; Spotify rises 15% on strong user growth
• FX: USD declined for third day; JPY rose on the plan to end food tax cut in 2 years
• Commodities: Gold and silver fell but hold above $5,000 and $80 respectively
• Fixed income: Alphabet drew £9.5bn for 100-year sterling bond at ~120bp over gilts

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Disclaimer: Past performance does not indicate future performance.

Macro:

• US retail sales stalled, missing the expected 0.4% gain after November's 0.6% increase. Gains in sectors like building materials and sporting goods were offset by declines in miscellaneous retail and furniture stores. Excluding autos and gasoline, sales were flat, while GDP-related sales fell 0.1%, the first drop in three months.
• US compensation costs for Q4 2025 for civilian workers rose by 0.7%, below the 0.8% forecast and the smallest increase since Q2 2021. Both wages and benefits were up 0.7%. Private and government worker compensation rose 0.7% and 0.8%, respectively. Annually, costs increased 3.4%, slightly down from Q3's 3.5%.
• US household debt reached $18.8 trillion in Q4 2025, up $191 billion. Mortgages rose by $98 billion, credit cards by $44 billion, auto loans by $12 billion, HELOCs by $11.6 billion, and student loans by $11 billion. Wilbert van der Klaauw of the New York Fed reported rising mortgage delinquencies, especially in lower-income areas.
• In the UK, amid the Mandelson scandal, Keir Starmer's chief of staff resigned, sparking leadership questions. Despite calls for his resignation, cabinet support stabilized Starmer. Speculation on Bank of England rate cuts affected the currency, with the rate still at 3.75% and inflation expected to hit 2% by April.

Equities: 

• US - US equities were mixed Tuesday, with the Dow up 0.2% to a new record while the S&P 500 slipped 0.2% and the Nasdaq fell 0.5%, as weak consumer data offset ongoing focus on AI-related spending. December retail sales were flat versus a 0.4% gain expected, signaling pressure on lower- and middle‑income households and pulling Treasury yields lower. Retail names lagged, financials sold off on AI‑driven competitive fears, and tech traded mixed, while Spotify jumped nearly 15% on strong results due to healthy monthly active user growth of 11% yoy. DataDog also rallied 14% after reporting earnings and forecasts that beat expectations.
• EU - European markets ended mixed Tuesday after Monday’s record highs, as earnings from major Eurozone companies delivered uneven signals. The STOXX 50 slipped slightly to 6,050 while the STOXX 600 held its record at 621. Tech outperformed, with SAP, Infineon, and Adyen extending their rebound from last week’s software‑sector selloff driven by automation concerns. Ferrari surged over 10% after beating profit and guidance expectations, lifting other luxury names following strong results from Kering. In contrast, financials lagged, with AXA, UniCredit, and Allianz each falling more than 2.5%.
• HK - Hang Seng rose 0.6%, to 27,183 on Tuesday, extending its rebound as most sectors advanced. Sentiment improved following Wall Street’s record Dow close and optimism over strong Lunar New Year travel demand in China. Reports that President Trump may visit Beijing in April also supported the backdrop. Innovent Biologics jumped 5% on confidence in its 2027 revenue target, JF SmartInvest surged 9.3%, and Axera Semiconductor rallied on its debut, while Zhaojin Mining fell 6.3% after a fatal mine accident.

Earnings this week:

• 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