(Sharecast News) - Asia-Pacific markets ended mixed on Friday as investors awaited a speech by US Federal Reserve Chair Jerome Powell for signals on the future path of interest rates.
Overnight, US stocks fell for a fifth straight session, with the S&P 500 sliding further, while Japan's core inflation eased to 3.1% in July from 3.3% the previous month.
Stephen Innes at SPI Asset Management noted that "Asia opened Friday not with conviction but with a whisper - Japan and Australia futures flat, China's benchmarks barely green.
"It's less a rally than a shuffle, a mirror of Wall Street's hesitation where the S&P slipped 0.4%, the Nasdaq lost 0.5%, and Walmart, one of the most significant retail barometers, cratered 4.5% on gnarly tariff guidance."
Markets mixed as investors look to Powell speech
In Tokyo, the Nikkei 225 inched up 0.02% to 42,617.50, with Takara Holdings climbing 4.48%, Rakuten advancing 3.39%, and Mazda Motor gaining 3.23%.
The broader Topix index rose 0.58% to 3,100.87.
Chinese equities posted solid gains, with the Shanghai Composite up 1.45% at 3,825.76, led by an 11.44% jump in Suzhou TZTEK Technology, while Pengxin International Mining and Beijing Vantone Real Estate each surged more than 10%.
The Shenzhen Component gained 2.07% to 12,166.06.
In Hong Kong, the Hang Seng Index advanced 0.93% to 25,339.14, driven by a 10.06% rise in SMIC, an 8.78% gain in Li Ning Co, and a 6.13% increase in BYD Electronic International.
South Korea's Kospi 100 rose 0.86% to 3,168.73, with Hyundai Electric Energy Systems, LS Industrial Systems, and Hanwha Techwin all climbing 6.83% or more.
Innes said the setup into Jackson Hole was "pure tension - markets a week ago had September cuts at 90% odds; now it's closer to 70% as stronger PMIs and hawkish Fed voices force traders to back off the hopium."
He added that "the dual mandate is pulling in opposite directions-jobs softening, inflation refusing to die - and Powell's Jackson Hole speech is one of the seasonal compasses left.
"Cut too soon and inflation expectations roar back; wait too long and the labour market cracks. It's a tightrope over the Tetons, with no net below."
In contrast, Australia's S&P/ASX 200 fell 0.57% to 8,967.40, dragged down by an 18.19% plunge in Guzman Y Gomez, a 8.95% drop in Regis Resources, and a 5.68% decline in Objective Corp.
Across the Tasman Sea, New Zealand's S&P/NZX 50 shed 1.15% to 13,042.76, led lower by a 23.63% slump in SkyCity Entertainment Group, a 5.02% fall in Serko, and a 3.92% loss in KMD Brands.
In currencies, the dollar was last up 0.19% on the yen to trade at JPY 148.65, as it gained 0.16% on the Kiwi to NZD 1.7216, but slipped 0.1% against the Aussie to change hands at AUD 1.5561.
Oil prices eased, with Brent crude futures last down 0.3% on ICE at $67.47 per barrel, and the NYMEX quote for West Texas Intermediate falling 0.22% to $63.38.
Innes said "oil, meanwhile, crept higher on whispers of new tariffs on India for Russian crude, tossing geopolitics back into the mix," adding another layer of uncertainty to commodity markets.
Consumer inflation eases in Japan, China's foreign direct investment falls
In economic news, Japan's consumer inflation eased slightly in July but stayed well above the Bank of Japan's 2% target, keeping expectations alive for a potential interest rate hike later this year.
Government data released Friday showed core consumer prices, excluding fresh food, rose 3.1% year-on-year, down from June's 3.3% but above the 3.0% forecast in a Quick poll of economists.
Bond yields edged higher after the data, with the 20-year yield up 1.5 basis points at 2.655% in morning trade.
Economists noted that while overall price pressures have moderated, underlying inflation remains elevated.
Prices excluding fresh food and energy climbed 3.4% in July, up sharply from 1.9% a year earlier, with rising rents and soaring rice prices feeding into broader food costs.
At its July meeting, the BoJ kept policy steady, with governor Kazuo Ueda emphasising caution over the impact of US tariffs even as the central bank raised its inflation forecast to 2.7% for the year ending March 2026.
In China, foreign direct investment fell 13.4% year-on-year to CNY 467.34bn in the first seven months of 2025, reflecting global economic uncertainty.
The services sector accounted for CNY 336.25bn, while manufacturing drew CNY 121.04bn.
High-tech industries bucked the downturn, attracting CNY 137.36bn, with e-commerce services investment surging 146.8% and aerospace manufacturing up 42.2%.
Investment from ASEAN rose 1.1%, while Switzerland, Japan, and the UK posted strong gains of 63.9%, 53.7%, and 19.5%, respectively.
Reporting by Josh White for Sharecast.com.
12.20 (0.13%)
0.00