Market Summary - 18 February 2026
Overview
The trading session in the Asia-Pacific region on February 18, 2026, exhibited moderately positive sentiment. Key indices showed gains, with Australia's AU200.cash index up by 0.18%, Japan's JP225 increasing by 0.22%, and Singapore's SG20cash rising by 0.17%. Notably, Chinese markets remained closed due to the Lunar New Year holiday.
Currency Movements
The New Zealand dollar (NZD) was the weakest currency in the region following the Reserve Bank of New Zealand's (RBNZ) decision to maintain the Official Cash Rate (OCR) at 2.25%. The RBNZ adopted a more dovish tone than anticipated, indicating that any potential rate hikes would depend on stronger growth and inflation, which limited expectations for short-end yields and pressured the NZD.
In contrast, the Australian dollar (AUD) also weakened, albeit to a lesser extent than the NZD.
Japan's Economic Data
Japan reported a significant increase in exports, rising by 16.8% year-on-year in January, marking the fastest growth in over three years. This surge was primarily driven by stronger shipments to China ahead of the Lunar New Year celebrations. However, analysts cautioned that this increase might reflect seasonal distortions rather than a genuine acceleration in external demand. Additionally, sentiment among manufacturers showed improvement in February.
The Japanese yen experienced a moderate decline during the session, with movements remaining limited due to relatively low liquidity. Authorities have continued to express vigilance against excessive currency fluctuations.
Australian Economic Indicators
In Australia, wage growth was reported at 0.8% quarter-on-quarter for the fourth quarter, aligning with expectations and previous readings. Annual wage growth remained steady at 3.4%, indicating stable wage dynamics without signs of renewed acceleration.
Commodity Insights
Gold prices rose above the $4,900 mark, continuing a structural uptrend supported by ongoing geopolitical and political uncertainties.
International Monetary Fund (IMF) Recommendations
The IMF urged Japan to gradually raise interest rates towards a neutral level by 2027 and cautioned against cutting the consumption tax, arguing that such fiscal easing could jeopardize debt sustainability.