Asian stocks mixed as investors look to Japanese inflation data and Ueda speaks aggressively

Stock markets in the Asia-Pacific region showed mixed sentiment on Friday following a sharp sell-off on Wall Street overnight, as investors cautiously awaited remarks from Federal Reserve Chairman Jerome Powell at Jackson Hole. Markets also reacted to Ueda's hawkish remarks and digested data showing Japan's core Inflation rate accelerated for the third month in a row to 2.7% in Julyand thus supports the Bank of Japan's more aggressive policy this year.

Japan (NKY:IND) +0.55%. The Nikkei 225 was little changed on Friday, drifting to slightly positive from unchanged in early trade; the Japanese yen climbed above 146 to the dollar as Bank of Japan Governor Kazuo Ueda said in testimony to parliament that the central bank may adjust its monetary policy if its economic forecasts come true, signaling a willingness to raise interest rates again if growth is strong and inflation remains stable.

Investors also digested data showing Japan's core inflation rate rose for the third straight month to 2.7% in July, supporting the Bank of Japan's more hawkish stance this year. The headline inflation rate remained unchanged for the third straight month at 2.8%.

China (SHCOMP) -0.07%The Shanghai Composite fell on Friday on market concerns about China's economic outlook. China's ongoing geopolitical and trade tensions with other major economies also put downward pressure on local stocks.

Hong Kong (HSI) -0.46%. Hong Kong stocks fell in early trading on Friday, a reversal from a solid session the previous day. Traders were reluctant to add riskier assets amid trade tensions between China and the EU, particularly over electric vehicles and dairy imports.

Shareholders of Alibaba Group Ltd. have reportedly approved a plan to upgrade its listing on the Hong Kong Stock Exchange to primary status on August 28, allowing the e-commerce giant to join a program linking Chinese exchanges with the Hong Kong Stock Exchange.

India (SENSEX) +0.04%. Stocks in India gained in early trade on Friday as traders digested the minutes of Thursday's RBI meeting, which showed the central bank reiterating its resolve to keep inflation under control while supporting GDP growth, amid challenges in balancing price pressures and supporting economic growth.

Australia (AS51) -0.16%The S&P/ASX 200 index posted losses on Friday, ending a 10-day winning streak, with technology and commodity stocks leading the decline.

Singapore's annual inflation rate was 2.4% in July 2024, unchanged for the second consecutive month but below market forecasts of 2.5%.

In the US, all three major indices closed in the red on Thursday before Fed Chairman Jerome Powell gave his speech in Jackson Hole later in the day.

US stock futures stabilized on Friday after major averages fell sharply in the previous session: Dow +0.31%; S&P500 +0.43%; Nasdaq +0.58%.

Bitcoin price maintained its recent rise above $60,000, approaching its highest level in three weeks and benefiting from a weaker dollar and weaker Treasury yields.

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