Asian markets experienced a mixed trading session as investors awaited a speech by Federal Reserve Chair Jerome Powell, seeking indications about the future direction of interest rates. In Japan, the benchmark Nikkei 225 index demonstrated a 0.5% increase, while Australia's S&P/ASX 200 saw a slight decline of 0.1%. Similarly, South Korea's Kospi and Hong Kong's Hang Seng index showed marginal movements, with the Shanghai Composite managing a 0.3% gain.
Market watchers closely monitored Japan's Bank of Japan Governor Kazuo Ueda's remarks regarding potential interest rate adjustments. Ueda hinted at the possibility of gradual rate increases amid continued vigilance over stock market fluctuations and currency movements. The Japanese economy, which struggled with deflation for years, witnessed policy shifts with the Bank of Japan ending negative interest rates in March and subsequently raising rates in July, aiming for sustainable economic growth and price stability.
Meanwhile, in the U.S., Wall Street experienced a decline led by the S&P 500's 0.9% fall following a period of gains. Concerns over the country's economic performance were exacerbated by reports indicating mixed signals, with an increase in jobless claims alongside contrasting trends in the services and manufacturing sectors. Expectations of a potential interest rate cut by the Federal Reserve in September due to slowing inflation further added to the market uncertainties, with investors eyeing Powell's upcoming speech at the economic symposium in Jackson Hole, Wyoming.