Asian stocks show mixed moves as investors await cues from the Federal Reserve conference on inflation control and interest rate adjustments. Fall of Shanghai and Hong Kong; Tokyo and Seoul advance. Oil prices rise.
Market Outlook and Wall Street Trends
The S&P 500 fell 0.1% on Friday, ending the week lower ahead of the Jackson Hole conference. Analysts anticipate possible aggressive surprises assuming the rate hikes are over. Jerome Powell could suggest structurally higher and more volatile inflation as the new norm.
Regional stock performances
Shanghai Composite Index loses 0.4% to 3,119.04; The Nikkei 225 gained 0.4% to 31,573.96. Hong Kong’s Hang Seng fell 1.3% to 17,713.68. Seoul’s Kospi rises 0.1% to 2,507.16; Sydney’s S&P-ASX 200 fell 0.3% to 7,124.60. India’s Sensex opens 0.3% higher at 65,147.47. New Zealand and Singapore withdraw; Bangkok and Jakarta advance.
Wall Street and tech stocks
S&P 500 falls to 4,369.71; The Dow Jones Industrial Average added 0.1% to 34,500.66. The Nasdaq Composite fell 0.2% to 13,290.78. Tech stocks like Microsoft, Alphabet and Tesla face losses amid higher rates. Some are down more than 10% from 2023 highs.
The Fed’s challenge with inflation
Strong consumer spending and hiring in the United States is sparking speculation that the Federal Reserve could maintain higher interest rates. Inflation remains above the 2% target, with July consumer prices rising 3.2% year-on-year. Controlling inflation until the target is reached is difficult.
Energy markets and monetary trends
Benchmark US crude oil rises to $81.11 per barrel; Brent crude advances to $85.26 per barrel. The dollar rises to 145.38 yen from 145.32 yen on Friday. The euro rises to $1.0880 from $1.0878.
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