HONG KONG: Asian markets diverged on Friday (Aug 22) ahead of a pivotal speech by the United States central bank chief, expected to shed light on possible interest rate cuts in the world’s top economy.
Recent days have seen cautious trading as investors parse a mixed outlook for the global economy, beset by worries over inflation even as a boom in tech – especially artificial intelligence – continues.
US Federal Reserve chairman Jerome Powell is set to deliver remarks during an annual gathering of central bankers in Jackson Hole, Wyoming on Friday, a key event for observers weighing the chances of a rate cut at a September meeting of policymakers.
Powell has come under intense public pressure this year from President Donald Trump to lower rates – an unusual political intervention at the independent central bank.
Stock markets across Asia were split across mostly narrow ranges on Friday afternoon, roughly seven hours before Powell’s speech.
Tokyo’s Nikkei index closed up 0.1 per cent, an improvement from Thursday’s 0.7 per cent drop.
Japan announced Friday that core inflation had eased to 3.1 per cent in July from 3.3 per cent the previous month – still above its central bank’s 2 per cent target and boosting expectations of an October rate hike.
Meanwhile, Shanghai’s main index finished up 1.5 per cent, breaking 3,800 points for the first time in a decade as shares in Chinese semiconductor firm Cambricon surged.
Benchmarks in Hong Kong, Seoul and Bangkok also rose, while Sydney and Taipei were down.
Early trading in Europe saw shares in London and Paris edge down.
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