Asian markets pre-empted Powell’s speech

HOLIDAY PRESS

© Associated Press
Currency traders on Thursday saw monitors at the foreign exchange headquarters of KEB Hana Bank’s headquarters in Seoul, South Korea.

Asian stocks pulled back Thursday as investors looked ahead to a speech by the U.S. Federal Reserve chairman for signs of more support for an economic recovery.

Tokyo’s Nikkei 225 (JP: NIK) slipped 0.4% and Hong Kong’s Hang Seng Index (HK: HSI) fell 0.8%. The Shanghai Composite Index (CN: SHCOMP) erased early losses, gaining 0.3%, while the Shenzhen Composite (CN: 399106) rose 0.8%. The Kospi (KR: 180721) in Seoul grew 0.4% while the Australian S & P / ASX 200 (AU: XJO) advanced 0.6%. Reference indices in Taiwan (TW: Y9999), Singapore (SG: STI) and Indonesia (ID: JAKIDX) slipped. New Zealand shares (NZ: NZ50GR) were higher, but trading was halted for a third straight day by a denial-of-service cyber attack on their servers.

Wall Street’s benchmark S&P 500 index hit another high, closing 1% on strong gains for tech stocks, although most other companies fell in the index.

Investors see Fed Chairman Jerome Powell’s speech as part of the US Federal Reserve’s annual Jackson Hole symposium. Officials have in the past used the meeting, which will be held online this year, to make announcements on the market.

This year, forecasters expect Powell to talk about inflation and the importance of Congress providing more economic aid after its last round of stimulus expired. Agreements between parties have prevented an agreement.

While keeping the Fed interest rate close to zero, Powell said Congress should take action sooner.

Investors, “they may be a little disappointed,” Oanda’s Craig Erlam said in a report.

“With the exception of nice tweaks, I do not think central banks will have much to offer in the near future,” Erlam wrote.

Markets have recovered most of this year’s losses, driven by gains for large technology companies that investors expect to do well despite the coronavirus pandemic. However, forecasters warn that the rebound may be too large and too early to hold.

The latest data shows that the economic activity of the US has slowed down after the first rebound of the pandemic.

The S&P 500 (SPX) rose to 3,48.73. Tech shares in the index account for more than 57% of profits.

The Dow Jones Industrial Average (DJIA) rose 0.3% to 28,331.92. The Nasdaq composite (COMP), which weighs heavily with technology stocks, climbed 1.7% to 11,665.06, its third-highest record high.

The Fed has been a primary reason for the stock market returning to a record high.

Benchmark U.S. crude oil for October delivery (CLV20) lost 7 cents to $ 43.32 a barrel in electronic trading on the New York Mercantile Exchange. The contract received 4 cents to $ 43.39 on Wednesday. Brent crude (UK: BRNV20), which is used to price international oils, added 1 cent in London to $ 46.17 per barrel. It fell 22 cents the perverted session to $ 45.64.

The dollar (USDJPY) held at 106.00 yen.

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