FX.co ★ Asian Shares Mixed In Muted Trading Before Powell's Speech

Asian markets closed mixed in subdued trading on Friday as investors eagerly anticipated Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium, expecting signals on potential U.S. rate cuts starting in September.

The U.S. dollar continued its recent decline, Treasury yields decreased, and gold saw a slight uptick, though it remained on course for a weekly loss. Crude oil futures sustained their gains but were set to finish the week lower, driven by concerns over demand from the U.S. and China.

Chinese indices experienced modest gains following a volatile trading session. The Shanghai Composite Index rose by 0.20% to 2,854.37, while Hong Kong's Hang Seng Index fell slightly by 0.16% to 17,612.10.

In Japan, markets posted marginal gains. The yen appreciated against the dollar after Bank of Japan Governor Kazuo Ueda reiterated his commitment to raising interest rates should economic and price trends align with forecasts. Data released earlier indicated Japan's core inflation accelerated for the third consecutive month in July, primarily due to increased electricity costs. Consequently, the Nikkei average advanced by 0.40% to 38,364.27, and the broader Topix index increased by 0.5% to 2,684.72. Pharmaceutical stocks surged, with Sumitomo Pharma and Chugai Pharma increasing by 3.5% and 1.5%, respectively.

In South Korea, the Kospi Index ended a three-day winning streak, falling by 0.22% to 2,701.69, as investors remained cautious ahead of Powell's speech. Chipmaker SK Hynix declined by 2.9%, and Samsung Electronics dipped by 0.8%, while automaker Hyundai Motor climbed by 1.8% and its affiliate Kia Corp rose by 1.6%.

Australian markets finished slightly lower after ten consecutive sessions of gains, with commodity and technology stocks facing selling pressure that overshadowed gains in the banking sector. ANZ Bank dropped by 2.2% after the country's bank regulator mandated an increase in the bank's reserve cash due to suspected extensive misconduct in its bond trading unit.

Over in New Zealand, the S&P/NZX-50 Index broke a four-day losing streak, climbing by 0.49% to 12,529.99.

U.S. stocks closed lower overnight, influenced by a rise in Treasury yields, prompting traders to secure profits following recent gains. A measure of U.S. business activity hit a four-month low in August, and an increase in new unemployment claims added to economic uncertainty. Consequently, the tech-heavy Nasdaq Composite plummeted by 1.7%, the S&P 500 declined by 0.9%, and the Dow Jones Industrial Average dipped by 0.4%.