📈 Asian Markets Hit All-Time Highs Amid US Policy Shifts

Asian equities surged to record levels this Thursday, buoyed by robust U.S. labor data and a tech-sector rally. While global sentiment is positive, the delay in expected U.S. Federal Reserve rate cuts presents a mixed landscape for emerging economies like Sri Lanka. • Overall Market Performance The MSCI Asia-Pacific index rose 0.65% to a new peak, marking a 13% gain in the first six weeks of 2026. Technology led gains in Japan and South Korea, with Japanese shares further boosted by recent election-driven stimulus promises. • Monetary Policy & US Yields Stronger-than-expected U.S. job growth has slashed the probability of a March rate cut from 20% to just 5%. • U.S. 2-year Treasury yields jumped to 3.512%. • U.S. 10-year Treasury yields stood at 4.186%. • Impact on Sri Lanka & Regional Outlook Higher U.S. yields typically support the US Dollar, which may pressure the Sri Lankan Rupee (LKR 309.35/40) despite its recent stability. For Sri Lanka, delayed Fed easing maintains elevated borrowing costs for foreign debt servicing and could temper the pace of domestic interest rate reductions by the Central Bank of Sri Lanka (CBSL). • Commodities & Energy • Crude Oil: Brent rose 0.4% to US$ 69.68/bbl due to Middle East tensions. Rising energy costs remain a risk to Sri Lanka's agriculture sector and domestic electricity pricing. • Gold: Prices dipped 0.44% to US$ 5,058.49/oz as the dollar firmed.