Most Asian Stocks Advance as Attention Turns to Warsh Speech
Asian shares cooled after a Nvidia-led rally as investors awaited guidance from Federal Reserve chair Kevin Warsh on interest rates.
- Asian equity markets turned cautious on Friday as investors awaited Federal Reserve Chair Kevin Warsh's closely watched speech at the Jackson Hole Symposium scheduled for Saturday, after a Nvidia-fuelled technology rally faded.
- Persistent inflation above the 2 percent target has divided the Fed, with three officials already dissenting in favor of rate hikes, while rising energy costs from the Iran war have pressured long-term Treasury yields upward.
- Nvidia jumped nearly 9% overnight, lifting Taiwanese shares 1.2%, though 30-year Treasury yields held at 5.1973% after briefly topping 5.3% for the first time since 2007, prompting U.S. Treasury intervention.
- Analysts at ANZ said markets are hoping Warsh will reduce "uncertainty surrounding the Fed's reaction function," though his last major appearance was widely panned as ambiguous and may disappoint investors.
- Stephen Innes at Quintex Intel called the address "the most consequential central bank speech left this year," arriving nearly three weeks before the September 16 policy decision, as futures price a 35% chance of a rate hike then.
29 Articles
29 Articles
Taiwan shares end up but off high ahead of Fed chair's speech
Taipei, Aug. 28 (CNA) Shares in Taiwan closed higher Friday ahead of a planned speech by Federal Reserve Chairman Kevin Warsh at the Jackson Hole Economic Policy Symposium in which he was expected to offer insights into the Fed's interest rate policy, dealers said.
Investors are eagerly looking at the first speech of the new US Federal Reserve Chief Kevin Warsh at the central banker meeting. What will he say about monetary policy? Meanwhile, Nvidia caused tailwind on Wall Street.
Global Market: Japan’s Nikkei rises as tech stocks gain, Fed signals cap rally
Japan’s Nikkei rose 0.8% and Topix gained 0.9%, led by technology and chip stocks. Gains were supported by Wall Street’s semiconductor rally, while inflation concerns, higher oil prices and rising bond yields limited broader advances. Investors also awaited Fed Chair Kevin Warsh’s Jackson Hole speech for clues on US interest rates.
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