Markets Today: Nikkei record anchors fifth day of Asian gains, US Dollar struggles as FTSE 100 slides 50 points after all-time high print

• The Nikkei 225 and KOSPI hit record highs, anchoring the fifth consecutive day of gains in Asian markets
• European equities also climbed to new heights, fueled by upbeat corporate earnings and significant M&A activity
• The Japanese Yen surged for its biggest weekly gain in over a year
• Gold prices slipped on strong US labor data, while oil saw modest gains

Asian markets continued their upward trajectory for a fifth consecutive session, outpacing US performance this year as market participants were drawn to the region's attractive valuations and robust growth outlook.

Equity benchmarks across the continent reached historic milestones on Thursday. South Korean shares hit an all-time high fueled by the global surge in AI-driven chip demand, while Singaporean stocks surpassed the 5,000-point mark as capital flowed into diversified sectors beyond technology. Consequently, the MSCI index of emerging Asian equities climbed roughly 0.7% to a new peak, anchored by a 3% record-breaking surge in the KOSPI.

The semiconductor industry acted as a primary engine for these gains. Major players Samsung Electronics and SK Hynix saw their share prices jump by 6.4% and 3.3%, respectively, propelling the South Korean benchmark upward for the fourth day in a row.

In Japan, the financial landscape saw a rare synchronized rally of stocks, government bonds, and the yen as investors reacted to Sanae Takaichi’s historic election as Prime Minister. The Nikkei 225 broke the 58,000 threshold for the first time, hitting an intraday record of 58,015.08 before cooling off to close slightly lower at 57,639.84. Despite the late-day dip, the index has gained nearly 15% so far in 2026, while the broader Topix index rose 0.7% to settle at 3,882.16.

Corporate performance within Japan remained a mixed bag. Shiseido experienced its largest stock surge since 2008 climbing 15.8% on the news of a projected return to profitability.

Conversely, Honda Motor saw its shares drop 3.5% following a weak earnings report. Market attention is now shifting toward SoftBank Group, which is expected to release results that clarify the financing strategy for its ambitious AI investment portfolio.

Most Read: Chart alert: Nikkei 225 bullish acceleration intact towards 60,000 in the first step

European equity markets climbed to unprecedented heights on Thursday, spearheaded by a rally in French benchmarks as a string of upbeat corporate earnings reports bolstered confidence.

The pan-European STOXX 600 edged up 0.7% to reach 625.86 points, while the CAC 40 outpaced its peers with a gain of more than 1.4%.

Specific corporate success stories drove much of the morning's momentum. Shares of Legrand rose 3.3% following the company's announcement that the booming data center market is fueling its expansion, allowing for an upward revision of its medium-term profitability goals. Similarly, luxury powerhouse Hermes saw its stock climb 2.3% after reporting consistent revenue growth, underpinned by robust consumer demand in both Japan and the United States.

Broader market sentiment was further supported by a sense of international relief. Investors reacted positively to recent US labor data, which indicated a resilient job market, effectively overshadowing recent anxieties regarding AI-driven market volatility. This shift in focus allowed equities to regain their footing after several sessions of uncertainty.

Merger and acquisition activity provided an additional jolt to the financial sector. Shares of British money manager Schroders skyrocketed 30% after US-based Nuveen announced an agreement to acquire the firm for £9.9 billion ($13.5 billion). The deal, which creates a combined entity managing nearly $2.5 trillion in assets, pushed the broader financial services sector up by 1.4%, making it the day's top-performing industry group.

On the FX front, the Japanese yen surged on Thursday, positioning itself for its most significant weekly gain in over a year. This resurgence has placed notable pressure on the US dollar, signaling a potential sentiment shift in global currency markets.

The yen climbed approximately 2.8% against the greenback and over 2% against the euro this week. While the dollar index edged slightly lower.

In other regions, the Australian dollar reached a three-year peak of $0.7146. This rally follows a series of interest rate hikes by the central bank, which has signaled that more tightening may be necessary to curb persistent inflation.

Meanwhile, China's yuan continued its steady appreciation, bolstered by seasonal demand for cash ahead of the Lunar New Year. The currency crossed the significant 6.90 per dollar threshold on Thursday, marking its strongest level in 33 months.

The euro and British pound both saw modest gains of about 0.11% against the dollar. For the pound, this resilience came despite new economic data revealing that the UK economy experienced almost no growth during the final quarter of 2025.

Currency Power Balance

Gold prices edged lower on Thursday as stronger-than-expected US labor data for January dampened anticipation for imminent Federal Reserve interest rate cuts.

Spot gold slipped 0.3% to $5,064.29 per ounce, while U.S. gold futures for April delivery eased 0.2% to $5,086.50. Silver also faced a pullback, dropping 0.7% to $83.47 per ounce following a substantial 4% rally the previous day.

In the energy sector, oil prices rose slightly as geopolitical tensions between the US and Iran stoked fears of potential supply disruptions in Tehran or key shipping lanes.

Brent crude futures increased by 0.5% to reach $69.75 a barrel, and US West Texas Intermediate (WTI) climbed 0.57% to $65. These gains followed a strong Wednesday session where both benchmarks rose by approximately 1% despite a reported increase in US crude stockpiles.

However, the upside for oil was tempered by several fundamental factors.

The International Energy Agency (IEA) revised its 2026 global demand growth forecast downward, noting that higher prices are beginning to weigh on consumption. Additionally, domestic supply data from the Energy Information Administration (EIA) showed a massive 8.5 million-barrel surge in US crude inventories climbing to 428.8 million barrels which vastly exceeded analyst expectations.

This inventory build, coupled with a decline in US refinery utilization rates to 89.4%, served as a significant cap on further price increases.

Read More:

• Breaking News: UK GDP underwhelms with 0.1% growth in Q4, FTSE 100 slips & GBP/USD advances
• Dow hits new record: Can the S&P 500 breakout pass 7000 and gain acceptance?
• Is the US Labor Market really holding well? – North American Mid-Week Market update

The day ahead is a quiet one in terms of EU and UK data.

The US session looks set to be an interesting one after the jobs data release yesterday. The dollar’s inability to sustain a rebound following strong jobs data suggests an underlying bearish sentiment. Despite short-term interest rates remaining elevated, markets quickly sold off the initial gains, indicating a preference for selling into rallies based on long-term outlooks.

Consequently, the threshold for a meaningful recovery is high; today's jobless claims likely won't suffice to turn the tide. For the dollar to find sustainable support, significant upward surprises in tomorrow’s inflation data are required.

In the meantime, the Dollar Index (DXY) is expected to stabilize near the 97.0 level.

From a technical perspective, the FTSE 100 index continues to hold comfortably above the 100-day MA.

Having printed fresh highs early this morning around the 10550 handle the index has seen a notable pullback of some 50 points.

For now though, bulls remain firmly in control even though a pullback to support around the 10400 mark cannot be ruled out.

Only a four-hour candle close below the higher low swing point at 10387 would lead to a change in structure and could lead me to reevaluate my outlook.

Immediate support rests at 10460 before the swing low at 10387 comes into focus.

Resistance to the upside at 10528 needs to be cleared if bulls are to make a run for the daily and all-time highs at 10550. .

FTSE 100 Index Daily Chart, February 12, 2026

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