Equities Lower Ahead Of Powell's Jackson Hole Speech, Ueda Before Parliament

Asian equities are mostly lower today, with markets showing caution ahead of Jerome Powell's upcoming speech at Jackson Hole. The yen strengthened as investors reacted to remarks from BOJ's Ueda as he speaks before parliament, contributing to mixed performance in Japanese stocks. Meanwhile, disappointing earnings from key Chinese tech firms added to the pressure, leading to declines in Hong Kong. Broader market sentiment was also weighed down by lingering concerns over global monetary policy direction, following hawkish rhetoric from central banks earlier in the month.

• Japanese equities traded mixed on Friday as investors remained cautious ahead of Jerome Powell's speech. The yen strengthened, supported by comments from BoJ's Ueda which added to market uncertainty. Earlier, Japanese inflation data exceeded expectations, further fueling speculation about the BoJ's policy direction. While some sectors, such as oil-related stocks, saw gains due to rising crude prices, overall market sentiment was subdued as traders awaited clearer signals on global monetary policy. The TOPIX is down 0.20%, banks are holding up ok at the moment with the Banks Index flat, while the Nikkei 225 is down 0.30%
• South Korean equities opened lower, ending a three-day rally as investors took profits. The market was weighed down by declines in major tech stocks, including Samsung Electronics and SK hynix, reflecting global concerns over potential shifts in U.S. monetary policy. The local currency also weakened against the USD, adding to the cautious sentiment in the market, currently the KOSPI & KOSDAQ are 0.50% lower.
• Taiwanese equities faced pressure as investors adopted a risk-off approach with tech stocks leading the decline. The market sentiment was further dampened by concerns over the global tech sector's outlook, particularly as key Taiwanese firms are closely linked to global supply chains. The Taiex is currently trading 0.83% lower, with TSMC down 0.65%
• Australian equities are trading lower, mirroring the negative sentiment from Wall Street's selloff on Thursday. The Australian market saw a pullback after a strong rally, as investors braced for potential volatility ahead of Jerome Powell’s speech. In contrast, New Zealand's market managed to edge higher, driven by an almost 10% jump from Fisher & Paykel after they raised earnings guidance.
• Elsewhere in Asia EM equities, Indonesia's JCI is 0.50% higher, Singapore's Strait Times is unchanged and Malaysia's KLCI is down 0.40%