Asian equities traded cautiously higher on Friday as investors awaited Fed Chair Jerome Powell’s remarks at Jackson Hole for signals on potential U.S. rate cuts.
In Japan, the Nikkei ended flat while the TOPIX rose 0.4%. July CPI data showed core inflation cooling less than expected, keeping price growth well above the BOJ’s 2% target and raising the likelihood of further tightening.
Chinese stocks outperformed, with the CSI 300 climbing 0.7% to a 10-month high and the Shanghai Composite reaching a nine-year peak. Optimism over fresh government stimulus outweighed weakness in the tech sector. Hong Kong’s Hang Seng gained 0.4% but remained down for the week.
Elsewhere, Australia’s ASX 200 slipped 0.2% but stayed near record highs. South Korea’s KOSPI rose 0.9%, though it is still on track for a weekly loss. India’s Nifty 50 fell 0.5% but is up 1.5% for the week.
Attention now turns to Powell’s upcoming speech, which could be pivotal for shaping expectations of a Fed rate cut in September.