HONG KONG, Feb 11, (V7N)— Asian stock markets showed mixed performance on Wednesday, reflecting cautious investor sentiment after weaker-than-expected US consumer data strengthened expectations of possible interest rate adjustments, while also raising concerns about the strength of the global economy.

The cautious trading followed a mixed session on Wall Street, where technology stocks retreated slightly after recent gains. Market analysts noted that investors remain watchful of high valuations in the tech sector, particularly amid significant global investment in artificial intelligence development.

Investors are now focusing on upcoming US employment data and inflation reports expected later this week. These indicators are anticipated to provide further insight into the US Federal Reserve’s monetary policy outlook ahead of its March meeting.

According to the US Commerce Department, retail sales remained unchanged in December after recording a 0.6 percent increase in November. The data has been interpreted by some analysts as providing the Federal Reserve with greater flexibility to consider potential rate adjustments, while also highlighting signs of cautious consumer spending, a key driver of economic growth.

Market experts suggest investor reactions to economic data have become more complex. Stephen Innes of SPI Asset Management noted that markets are no longer responding uniformly to weaker economic indicators, adding that investor sensitivity to developments in artificial intelligence remains elevated.

Financial market projections indicate expectations for multiple interest rate reductions this year, with some already reflected in market pricing. However, Federal Reserve officials have signalled a measured approach. Cleveland Federal Reserve President Beth Hammack stated that maintaining current rates could remain appropriate while policymakers evaluate economic developments and the impact of earlier adjustments. Dallas Federal Reserve President Lorie Logan also indicated that further rate changes would depend on additional cooling in the labour market, while emphasising continued monitoring of inflation trends.

On Wall Street, the Dow Jones Industrial Average edged higher to a record closing level, while the S&P 500 and Nasdaq indices posted modest declines, largely influenced by technology sector performance.

Across Asia, market movements were varied. Gains were recorded in Hong Kong, Sydney, Seoul, Taipei and Manila, while Shanghai, Singapore and Wellington saw declines. Tokyo markets remained closed due to a public holiday.

Recent data indicating easing consumer inflation in China generated limited market reaction, as investors continued to assess broader economic indicators.

Attention within financial markets also remains focused on developments in the technology sector. Major investments in artificial intelligence are being closely monitored by investors evaluating long-term returns. Alphabet, the parent company of Google, recently raised more than $30 billion in debt as part of its strategy to expand technological capabilities. Additionally, emerging AI-driven financial and software tools have contributed to ongoing industry competition and evolving market dynamics.

  • Hong Kong – Hang Seng Index: Up 0.1% at 27,211.34

  • Shanghai – Composite Index: Down 0.1% at 4,126.41

  • Tokyo – Nikkei 225: Closed for holiday

  • Euro/Dollar: $1.1901

  • Pound/Dollar: $1.3648

  • Dollar/Yen: 153.92 yen

  • Euro/Pound: 87.22 pence

  • West Texas Intermediate: Up 0.7% at $64.38 per barrel

  • Brent Crude: Up 0.6% at $69.20 per barrel

  • New York – Dow Jones: Up 0.1% at 50,188.14

  • London – FTSE 100: Down 0.3% at 10,353.84

END/BUS/RH/