Asian stock markets opened Thursday on a cautious note, with a mixed performance across major indices as investors awaited fresh guidance from the US Federal Reserve ahead of the closely watched Jackson Hole symposium.
Mixed performance across the region
Japan’s Nikkei 225 slipped by around 0.6 per cent, weighed down by continued weakness in manufacturing and export sectors. In contrast, South Korea’s KOSPI gained nearly 0.9 per cent, buoyed by strong performance in semiconductor stocks. Australia’s benchmark index touched a fresh record high, supported by mining and energy shares, while Chinese blue-chip indices edged higher despite persistent concerns over the property sector.
Hong Kong’s Hang Seng Index traded flat, reflecting subdued investor sentiment as traders assessed Beijing’s limited stimulus measures and ongoing economic headwinds.
Global cues drive sentiment
The tone across Asian markets was influenced by overnight losses in US technology stocks, which put pressure on risk appetite. Investors are positioning cautiously ahead of comments from Federal Reserve Chair Jerome Powell, which could offer clues on the timing and scale of a potential interest rate cut in September.
“The market is in a holding pattern until we get a clearer signal from the Fed,” one Singapore-based strategist noted, pointing to heightened sensitivity to policy expectations amid slowing global growth.
India’s muted opening
In India, futures for the Nifty 50 suggested a subdued open near 25,050 points following a strong five-day rally earlier in the week. Market analysts attributed the pause to profit-taking and a wait-and-see approach ahead of global monetary policy updates.
Focus on inflation and growth
Analysts say traders remain alert to developments in global inflation and growth data, which continue to shape expectations for monetary easing in the coming months. Commodity markets also added to the cautious tone, with oil prices holding steady and gold inching higher as investors sought safe-haven assets.
Outlook for the day
With Powell’s remarks at Jackson Hole expected to be the key driver for the rest of the week, Asian markets are likely to remain volatile. Any signals of aggressive rate cuts could lift sentiment, while a more conservative stance may weigh on equities in the short term.
Market participants are also watching for regional data releases, including Japanese inflation figures and Chinese industrial profit updates, which could provide further direction for traders navigating an uncertain macroeconomic landscape.
REFH – Newshub, 21 August 2025
Recent Comments