Asia Markets Wobble Ahead of Jackson Hole
Japanese inflation data and anticipation of Fed Chair Powell's speech at the Jackson Hole symposium leave Asian markets in a mixed bag on Friday.
Asian-Pacific markets saw a generally downwards trend on Friday, with investors holding their breath for Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole Economic Symposium. Powell's remarks at this gathering have historically offered insight into the Fed's policy direction and have been a significant influence on market sentiment.
Meanwhile, Japan released its July inflation figures. Headline inflation remained unchanged from the previous month at 2.8%, while core inflation, which excludes volatile food prices, hit 2.7%, aligning with economists' expectations. This marked an increase from June's 2.6%. However, the 'core-core' inflation rate, excluding both fresh food and energy prices and closely watched by the Bank of Japan (BoJ), dropped to 1.9% in July, down from 2.2% in June, marking its lowest level since September 2022.
Despite this mixed inflation picture, Japan's Nikkei 225 index managed a 0.4% gain, closing at 38,364.27, its highest point since August 1st. The Topix index also performed well, rising 0.5% to finish at 2,684.72, also hitting its highest point since the same date.
BoJ Governor Kazuo Ueda addressed the Japanese parliament on Friday, expressing the central bank's "high vigilance" towards market movements, highlighting ongoing instability.
Elsewhere in Asia, South Korea's Kospi index dipped 0.22% to close at 2,701.69, while the Kosdaq, a smaller-cap index, suffered its third consecutive day of losses, ending marginally lower at 773.26.
Australia's S&P/ASX 200 index also experienced a slight decline, falling just below the flatline at 8,023.9, ending its ten-day winning streak.
Hong Kong's Hang Seng index dipped by 0.14% in its final hour of trading, while mainland China's CSI 300 index reversed earlier losses to rise 0.42%, closing at 3,327.19. The CSI had fallen to a six-month low earlier in the day before rallying.
Alibaba Group, a Chinese tech giant, announced on Friday that it would be converting its secondary listing in Hong Kong to a primary listing, effectively becoming dual-listed in both Hong Kong and New York. The company clarified that this conversion would not involve any issuance of new shares or fundraising.
Overnight in the US, the Nasdaq Composite, a tech-heavy index, saw the largest drop among the major indices, shedding 1.67% as technology stocks faced downward pressure. The S&P 500 declined by 0.89%, while the Dow Jones Industrial Average finished down 0.43%.
The focus in the coming days will be on Powell's speech at Jackson Hole, with investors eagerly awaiting his insights into the Fed's monetary policy stance.
