Stock Market Update

The S&P 500 futures currently trade 43 points above fair value.

Equity indices in the Asia-Pacific region had a mostly higher showing on Wednesday while Japan's Nikkei was closed for National Founding Day. However, even with the Nikkei's closure, the yen continued this week's show of strength, approaching its late-January high against the dollar in the 152 area. There was some focus on an observation from Standard & Poor's that outstanding JGBs have an average maturity of about nine years, which should not put undue pressure on the Japanese government to refinance its obligations. South Korea's exports were up 44.4% yr/yr through the first ten days of February with chip exports surging 137.6% yr/yr. China reported another muted inflation reading for January while PPI deflated for the 40th month in a row.

• In economic data:
  • China's January CPI 0.2% m/m (expected 0.3%; last 0.2%); 0.2% yr/yr (expected 0.4%; last 0.8%). January PPI -1.4% yr/yr (expected -1.5%; last -1.9%)
  • South Korea's January Unemployment Rate 3.0% (last 3.3%)
  • Australia's Q4 Invest Housing Finance 7.9% m/m (last 9.2%) and Home Loans 10.6% m/m (last 6.2%)

---Equity Markets---

• Japan's Nikkei: HOLIDAY
• Hong Kong's Hang Seng: +0.3%
• China's Shanghai Composite: +0.1%
• India's Sensex: -0.1%
• South Korea's Kospi: +1.0%
• Australia's ASX All Ordinaries: +1.6%

Major European indices trade on a mostly lower note. Siemens Energy beat earnings expectations while Heineken's outlook remained guarded and called for aggressive cost cuts. British homebuilder Barratt Redrow reported weakening margins despite volume growth while Commerzbank saw strong revenue growth to close out 2025. Elliott Management has reportedly built up a stake in the owner of the London Stock Exchange. European Central Bank policymaker Schnabel penned an op-ed in FT, calling for a closer integration of the European common market.

• In economic data:
  • Italy's December Industrial Production -0.4% m/m (expected -0.6%; last 1.5%); 3.2% yr/yr (last 1.4%)

---Equity Markets---

• STOXX Europe 600: +0.3%
• Germany's DAX: -0.2% 
• U.K.'s FTSE 100: +0.8%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: -0.4%
• Spain's IBEX 35: +0.1%