HK stocks slip in line with region amid Fed wait
Shares in Asia turned cautious on Friday after a Nvidia-fuelled technology rally while currency and bond markets held their breath for the world's most powerful central banker to speak on US interest rates. In Hong Kong, the benchmark Hang Seng Index opened down 155 points, or 0.61 percent, at 25,410. The tech index slipped 39 points, or 0.85 percent, to 4,580 while the China Enterprises Index…
Asian stock markets experienced a cautious mood on Friday following a surge in tech stocks driven by Nvidia. Traders in Hong Kong saw the Hang Seng Index opening lower by 155 points, or 0.61 percent, at 25,410. The technology-focused index declined 39 points, or 0.85 percent, to 4,580, while the China Enterprises Index slipped 64 points, or 0.76 percent, to 8,425.
In Shanghai, the Shanghai Composite Index opened six points, or 0.16 percent, lower at 3,950. The Shenzhen Component Index slipped 29 points, or 0.21 percent, to 14,019, and the ChiNext Index fell 19 points, or 0.57 percent, to 3,453.
Tokyo's Nikkei index also saw a slight decline of 27 points, or 0.04 percent, opening at 66,104 before partially recovering to 66,639 at noon. In Seoul, the Kospi Index experienced a drop of 73 points at one point during the morning session, opening 65 points, or 0.95 percent, lower at 6,846. All eyes were turned towards the United States Federal Reserve's Jackson Hole Symposium, where Chair Kevin Warsh was set to address the gathering.
Three Federal Reserve officials had already voiced concerns about inflation persisting too high, but Warsh had refrained from providing any forward guidance regarding interest rate movements.
Analysts at ANZ noted that while they did not expect Warsh to offer any forward guidance, markets were hoping he would help reduce some of the uncertainty surrounding the Fed's reaction function. The market futures suggested a 35 percent chance of a rate hike during the Fed's meeting on September 16, with a full pricing for a possible rate increase by December.
ANZ warned that if Warsh fails to provide clear direction due to recent volatility in the rates markets, it could lead to a negative market reaction. Longer-dated yields have risen since the Fed's July meeting, as Warsh was perceived as not providing sufficient concrete steps to tackle persistently high inflation. The Fed is also facing a divided opinion, with several policymakers advocating for interest rate hikes to curb price pressures.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
