Variation in Asian market performances before US Fed chair’s speech

Asian shares were trading with mixed results on Thursday despite some optimism following a rally on Wall Street driven by better-than-expected profit reports from major companies. The annual conference of central bankers at Jackson Hole, Wyoming is leading to relatively quiet trading, with all eyes on Federal Reserve Chair Jerome Powell’s upcoming speech. Powell’s speech is highly anticipated as investors hope for hints on the Fed’s plans to cut interest rates in September after increasing them to a two-decade high to combat inflation.

In morning trading, Japan’s Nikkei 225 rose by 0.6% to 38,190.85, while Australia’s S&P/ASX 200 gained 0.2% reaching 8,029.40. South Korea’s Kospi, on the other hand, shed 0.1% to 2,697.43 as the Bank of Korea held a monetary policy meeting with no expected rate changes amid mixed views on the outcome. Hong Kong’s Hang Seng edged up 0.1% to 17,413.42, and the Shanghai Composite remained steady at 2,855.16.

On Wall Street, the S&P 500 climbed 0.4% following an eight-day winning streak, nearing its all-time high set in July at 5,620.85. The Dow Jones Industrial Average added 0.1% reaching 40,890.49, and the Nasdaq composite increased by 0.6% to 17,918.99, with American companies showcasing strong profit growth for S&P 500 firms.

Concerns have been rising about consumer spending in the United States and its impact on the slowing economy and possible recession. Inflation has slowed but prices remain elevated compared to pre-pandemic levels. The 10-year Treasury yield has been decreasing since April, standing at 3.79% further easing from 3.81% on Tuesday.

US government data indicates a revision in job figures, suggesting 818,000 fewer jobs were added in the year through March than previously reported, indicating a cooling job market. In energy markets, benchmark U.S. crude dropped by 16 cents to $71.77 a barrel, while Brent crude, the international standard, slipped by 8 cents to $75.97 a barrel. Currency trading saw the U.S. dollar strengthening against the Japanese yen to 145.36 from 145.14 yen, while the euro dipped to $1.1147 from $1.1153.