Asian markets mixed as investors await signals about future US rate cuts
Dealers watch computer monitors near screens showing the foreign exchange rate between US dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a dealing room of Hana Bank in Seoul, South Korea, Aug 20, 2025. (File photo: AP/Lee Jin-man)
HONG KONG: Asian markets were varied during cautious trading sessions on Thursday (Aug 21), one day before a key speech expected to offer signals about future interest rate cuts in the United States.
US Federal Reserve Chairman Jerome Powell, who has resisted public demands by President Donald Trump to slash rates, is scheduled to deliver remarks on Friday at the annual central bankers conference in Wyoming.
Data last week provided a mixed picture of US inflation, making it uncertain if the Fed will lower rates as many investors expect in September, which could bolster growth in the world's largest economy.
In a sign of further uncertainty, recent days have seen a sell-off of major technology stocks as investors grow wary of a sustained rally across the sector despite a range of global economic hurdles.
Wall Street closed mostly lower on Wednesday, with the tech-heavy Nasdaq falling again as shares in AI chip-maker Nvidia ticked down.
Despite the building unease, shares in Seoul closed up on Thursday, bolstered by a rise in Samsung's price.
Shanghai and Sydney also saw moderate gains on the day.
Meanwhile, Tokyo's Nikkei index closed lower for the second day in a row, while shares in Hong Kong were down 0.4 per cent in the final hour before the end of the session.
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Early trading in Europe saw London and Frankfurt make slight gains, while Paris started narrowly down.
Japan reported on Wednesday that the country's July exports plunged at the steepest rate in over four years, straining under hefty US tariffs.
Wednesday also saw Hong Kong's stock exchange operator post record half-year revenue, riding a renewed surge in listings and trading activity in the Chinese finance hub.
The slump in tech stocks on Wednesday "appeared more like profit-taking than a shift in conviction", wrote Ahmad Assiri, research strategist at Pepperstone, in a note.
"This rotation out of tech suggests a cooling-off phase rather than a wholesale shift in positioning," he added.
Global markets have fluctuated recently on the prospects of a peace deal in Ukraine, following days of high-stakes diplomacy in the aftermath of Trump's Friday meeting with Russian counterpart Vladimir Putin.
But hopes for an imminent end to the war, started by Moscow's invasion over three years ago, were tempered on Wednesday after Russia said it must be included in any discussions on security guarantees for Ukraine.
The diplomatic whirlwind has sparked volatility in oil markets as traders speculate over the possible lifting of sanctions on Russia, a major producer.
Oil prices continued to rise on Thursday on the heels of a report the previous day showing a sharp decline in US crude stockpiles.
