Asian stocks mixed ahead of possible Fed forecast



A forex trader watches monitors in the forex trading room at KEB Hana Bank headquarters in Seoul, South Korea on Friday, August 27, 2021. Asian stock markets were mixed on Friday as investors waited for more advice on US Federal Reserve easing plans. (AP Photo / Ahn Young-joon)


Asian stock markets were mixed on Friday as investors waited for more advice on the US Federal Reserve’s easing plans.

The moves in Asia follow a Wall Street pullback after the deadly attacks on Afghan civilians and US troops at Kabul airport on Thursday.

Tokyo’s Nikkei 225 lost 0.4% to 27,641.14 while South Korea’s Kospi gained 0.2% to 3,133.88. Hong Kong’s Hang Seng slipped 0.1% to 25,382.65 in afternoon trading.

The Shanghai Composite rose 0.4% to 3,514.16. The Sydney S & P / ASX 200 fell below 0.1% to 7,488.30. Benchmarks in India, Malaysia and Thailand rose while Indonesia and Singapore declined.

Fed Chairman Jerome Powell is due to speak at the central bank’s annual symposium in Jackson Hole, Wyoming, later Friday. All indicators when the bank begins to reduce its asset purchases will be monitored.

Several Fed officials have suggested easing will take place as soon as possible, although a firm timeline has not been set.

“Despite the ‘risky’ mood as Jackson Hole approaches, which arguably indicates a sufficiently accommodating tilt by the Fed to keep markets buoyant, weak trading in US bond markets this week suggests latent caution,” he said. Mizuho Bank’s Hayaki Narita said in a report. .

“As overestimated as the importance of Jackson Hole is, it is undeniable that the quest for political clarity will only gain momentum,” he added.

Investors are poised for another busy week of economic releases, including August US jobs data and Eurozone inflation flash numbers. India, Australia and Canada will also report second quarter economic growth.

“If the speech turns out to be a non-event, the market risk monitoring event will be next week’s jobs report, which will provide more concrete data to guide the reduction schedule,” said Yeap Jun Rong of IG.

Wall Street indices fell on Thursday after two suicide bombers and gunmen attacked desperate crowds trying to flee Taliban-controlled Afghanistan. President Joe Biden said the latest bloodshed will not drive the United States out of Afghanistan any sooner than expected, and that he has asked the United States military to make plans to strike the militant group Islamic State , who claimed responsibility for it.

Technology and communications companies led the sell-off, with 10 of the S&P 500’s 11 sectors closing lower. The benchmark fell 0.6% to 4,470 and broke its five-day winning streak.

The Dow Jones Industrial Average lost 0.5% to 35,213.12 and the Nasdaq composite lost 0.6% to 14,945.81. The top three indexes are still on track for weekly gains.

In energy markets, benchmark US crude added $ 1.14 to $ 68.56 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used as the price base for international oils, gained $ 1.13 to $ 72.20.

The dollar fell to 110 yen from 110.06 yen on Thursday. The euro fell from $ 1.1759 to $ 1.1766.

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