Asia Markets Tense as Investors Await Fed's Jackson Hole Speech
Asian stocks largely held steady amidst anticipation for Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium. Investors are eager for insights on monetary policy direction and the possibility of a September rate cut amidst U.S. job market concerns. Meanwhile, China's tech sector saw significant gains.
Asian stock markets remained cautious on Friday, with traders eagerly awaiting a pivotal speech from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium this weekend. Powell's insights are expected to offer guidance on the Federal Reserve's monetary policy direction, particularly concerning the potential for a rate cut in September.
MSCI's Asia-Pacific shares index outside Japan dropped 0.1%, wiping out early session gains, while China's blue-chip CSI 300 index surged 1.8% due to strong performance in tech shares following an upgrade to DeepSeek's AI model and news regarding Nvidia's AI chip. Meanwhile, Japan's inflation data spurred expectations for possible future rate hikes.
The Federal Reserve's policy outlook remains uncertain as traders analyze recent economic data. Despite rising odds of a September rate cut amid weak payrolls data, the market's focus remains on Powell's upcoming remarks, which may sway dollar strength and interest rate expectations ahead of crucial U.S. payroll data.
(With inputs from agencies.)
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