Jackson Hole in Focus as Asian Markets Trade Mixed

Asian stocks trade mixed as investors await Powell’s Jackson Hole speech and Fed rate cut clues; oil rises on U.S. inventory drop.

Asian markets traded mixed on Thursday as investors awaited key signals from Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium, with expectations mounting for a September rate cut. According to CME’s FedWatch Tool, there is now an 82.9% probability of a quarter-point reduction in the Fed funds rate next month.

Japan’s Nikkei 225 fell 0.65%, slipping below 42,650 as weakness in automakers, financials, and heavyweights such as SoftBank and Fast Retailing dragged the index lower. Daiichi Sankyo tumbled more than 6%, while chip-testing giant Advantest climbed over 3%. Fresh PMI data showed a slower pace of contraction in manufacturing, with the index at 49.9, while the yen held in the lower 147 per dollar range.

Jackson Hole in Focus as Asian Markets Trade Mixed

In contrast, China’s Shanghai Composite added 0.46%, while Hong Kong’s Hang Seng dipped 0.21%. Australian shares extended their rally, with the S&P/ASX 200 jumping 0.96%, closing in on the 9,000 level. Gains were led by mining, financial, and energy stocks, while Super Retail surged nearly 13% on record sales. Strong PMI readings in both manufacturing and services supported sentiment, and the Australian dollar steadied at $0.642.

Elsewhere in Asia, South Korea and Taiwan posted modest gains, while Indonesia’s market edged lower.

Commodities & Bond Yields
In commodities, gold eased 0.22% to $3,380.97, while silver rose 0.38% to $37.917. Oil prices climbed on the back of a sharp U.S. inventory drawdown, with Brent crude up 0.45% at $67.14 and WTI up 0.54% at $63.05. U.S. crude inventories dropped by 6.0 million barrels, well below expectations of a 0.8 million draw.

Global bond markets were steady, with the U.S. 10-year yield at 4.297%, the UK 10-year at 4.6720%, and Germany’s 10-year bund at 2.7164%.

Wall Street & Global Cues
On Wall Street, the Dow managed slight gains, while the Nasdaq and S&P 500 closed in the red, weighed down by profit-taking in tech shares despite optimism over possible U.S. federal stakes in Intel and other chipmakers in exchange for subsidies. European markets ended mixed.

Key Events Ahead
Investors will closely watch U.S. economic data later in the day, including:

• 12:30 PM GMT – Unemployment Claims
• 01:45 PM GMT – Flash Manufacturing PMI
• 01:45 PM GMT – Flash Services PMI

All eyes now turn to Powell’s speech for clues on the Fed’s policy path as markets price in a potential shift toward easing.

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