Asian equities traded mixed on Friday, tracking Wall Street’s fifth straight decline, as investors remained cautious ahead of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium.
Regional Markets:
Japan
The Nikkei 225 slipped 0.1% to 42,597.94 after July’s core inflation slowed to 3.1% from 3.3% in June. ING Economics noted the reading matched expectations but warned inflation above 3% could prompt a rate hike as soon as October.
China
Hong Kong’s Hang Seng Index rose 0.4% to 25,193.50, while the Shanghai Composite gained 0.7% to 3,796.36.
South Korea
The Kospi advanced 0.7% to 3,163.20.
Australia
The S&P/ASX 200 fell 0.3% to 8,993.80 as traders locked in profits after recent record highs.
Elsewhere
Taiwan’s TAIEX dipped 0.3%, and India’s Sensex edged down 0.1%.
Monetary policy outlook
Expectations for a Fed rate cut have cooled after officials emphasized persistent inflation risks. Mizuho Bank noted that while policy “sands are shifting,” Powell may stick to a cautious stance rather than signaling imminent easing.
Wall Street recap
- S&P 500: Fell 0.4% to 6,370.17, its fifth straight loss since hitting a record on Aug. 14.
- Dow Jones: Dropped 0.3% to 44,875.50.
- Nasdaq: Lost 0.3% to 21,100.31.
Walmart was among the biggest drags, sinking 4.5% after reporting weaker-than-expected profits. Tech stocks like Nvidia steadied after recent volatility.
Bond yields climbed after data showed U.S. business activity expanding at the fastest pace this year, according to S&P Global. However, rising tariffs pushed selling prices to their highest increase in three years — a concerning sign for inflation.
Commodities & Currencies
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Oil: U.S. crude eased 2 cents to $63.50 a barrel, while Brent dipped 2 cents to $67.65.
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Forex: The U.S. dollar strengthened to 148.76 yen from 148.37, while the euro slipped to $1.1591.
Summary
Asian markets were mixed on Friday, with Japan slipping on softer inflation while China and South Korea posted gains, and Australia and Taiwan saw declines. On Wall Street, losses extended for a fifth consecutive session as the S\&P 500, Dow, and Nasdaq all fell, weighed down by a 4.5% drop in Walmart shares. Investors remained cautious ahead of Fed Chair Jerome Powell’s Jackson Hole speech, with expectations for a September rate cut easing amid persistent inflation concerns. U.S. data showed business activity accelerating, but higher tariffs pushed prices higher, complicating the inflation outlook. In commodities and currencies, crude prices held steady, while the U.S. dollar strengthened against the yen and the euro weakened.
