Monday, 2 February 2026
Indonesia's capital markets face a potential outflow of $60 billion if MSCI downgrades the country to frontier market status, analysts warn. This follows a significant sell-off, with the benchmark Jakarta Composite Index dropping about 5% on February 2, after a tumultuous week that saw an $80 billion market rout triggered by concerns over transparency. Since Wednesday, foreign investors have sold approximately $736 million in shares.
Oracle Corp. announced plans to raise between $45 billion and $50 billion in 2026 through debt and equity sales to enhance its cloud infrastructure, responding to rising demand from major clients such as Nvidia and OpenAI. Following the announcement, Oracle's shares rose by 4% after a 2.6% decline in premarket trading.
Devon Energy and Coterra Energy have announced a merger in an all-stock deal valued at approximately $58 billion, including debt. Under the agreement, Coterra shareholders will receive 0.70 shares of Devon common stock for each share of Coterra, resulting in Devon shareholders owning about 54% of the combined entity, which will retain the Devon Energy name and be headquartered in Houston. The merger is expected to generate $1 billion in annual pre-tax synergies and is anticipated to close in the second quarter of 2026, pending regulatory approvals.
GIC Pte and Mubadala Investment Co. are in negotiations to join KKR & Co. and Singapore Telecommunications Ltd. in a potential acquisition of data center operator STT GDC Pte, which could be valued at over $10 billion including debt. The sovereign wealth funds from Singapore and Abu Dhabi are expected to participate as minority co-investors in the KKR-led consortium, with a deal announcement possible as early as this week.
Taiwan has surpassed China in market weighting within a key emerging-markets stock index for the first time in nearly two decades, driven by a significant increase in artificial intelligence shares. This shift reflects changing investor sentiment and market dynamics as Taiwan's tech sector gains prominence.
China has implemented new measures to stabilize its heavily indebted property sector, which previously accounted for a quarter of the nation's economy. Key actions include ending the 'three red lines' policy on debt ratios, introducing a pilot program for commercial real estate investment trust funds (REITs), and expanding the 'project whitelist' to 4 trillion yuan by year-end. Additionally, the central bank has unveiled a stimulus package that reduces mortgage interest rates and down payment requirements, while over 50 cities have initiated a 'swap old for new' apartment scheme.
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