HONG KONG, Feb 11, 2026 (BSS/AFP) - Asian stock markets fluctuated Wednesday after a strong start to the week as investors weighed weak US consumer data that boosted the case for more interest rate cuts but stoked concerns about the world's number one economy. The tepid performance followed a mixed day on Wall Street, where tech firms pared recent gains amid lingering worries about extended valuations and the vast sums pumped into artificial intelligence. Traders were also awaiting key jobs data due later in the day -- and inflation figures at the end of the week -- that could provide a clearer idea about the Federal Reserve's plans ahead of its March policy meeting. The Commerce Department said Tuesday that US retail sales saw no growth in December, having grown 0.6 percent in November. The figures provided the Fed with room to consider cutting borrowing costs next month, having held in January after three successive reductions. However, they also indicated there was unease among American consumers, who are a key driver of growth, and pointed to further weakness in the economy. And analysts said the previous "bad news is good news" adage, which has fuelled rate cut hopes in the past and propelled markets higher, might be a thing of the past. "The market is no longer responding uniformly to the idea that weaker data automatically lifts stocks," said SPI Asset Management's Stephen Innes. "Beneath the surface, anxiety around AI-related headline risk is clearly elevated." Traders now see more chance of three rate cuts this year, with two already baked into prices, according to Bloomberg. Still, two decision-makers at the central bank made the case Tuesday to keep borrowing costs unchanged for now owing to elevated inflation. Cleveland Fed boss Beth Hammack said in a speech in Ohio that "based on my forecast, we could be on hold for quite some time", adding that "I'd prefer to err on the side of patience as we assess the impact of recent rate reductions and monitor how the economy performs". And Dallas Fed chief Lorie Logan told a forum in Texas another cut could be appropriate if there were "further material cooling in the labour market" but she was currently "more worried about inflation remaining stubbornly high". While the Dow edged up to another record on Wall Street, the S&P 500 and Nasdaq dropped, with tech firms among the main losers. Asia fared marginally better, with Hong Kong, Sydney, Seoul, Taipei and Manila up, while Shanghai, Singapore and Wellington were down. Tokyo was closed for a holiday. There was little major reaction to data showing Chinese consumer inflation eased last month. Traders remain on guard about developments in the tech space as they worry that the hundreds of billions firms have pumped into AI may not see any returns for some time. That was compounded Tuesday after Google parent Alphabet raised more than $30 billion in debt in less than 24 hours as it looks to ramp up its capabilities. News that startup Altruist Corp had rolled out a tax-strategy tool added to the sense of unease on trading floors as it fanned concerns that the software will take business from mainstream firms. Sentiment was rattled last week after Anthropic unveiled a model that could replace numerous software tools, including for legal work and data marketing. - Key figures at around 0230 GMT - Hong Kong - Hang Seng Index: UP 0.1 percent at 27,211.34 Shanghai - Composite: DOWN 0.1 percent at 4,126.41 Tokyo - Nikkei 225: Closed for a holiday Euro/dollar: UP at $1.1901 from $1.1899 on Tuesday Pound/dollar: UP at $1.3648 from $1.3644 Dollar/yen: DOWN at 153.92 yen from 154.31 yen Euro/pound: UP at 87.22 pence from 87.18 pence West Texas Intermediate: UP 0.7 percent at $64.38 per barrel Brent North Sea Crude: UP 0.6 percent at $69.20 per barrel New York - Dow: UP 0.1 percent at 50,188.14 (close) London - FTSE 100: DOWN 0.3 percent at 10,353.84 (close)