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Asian shares surged, while US stock futures declined as traders awaited Federal Reserve chair Kevin Warsh's Jackson Hole speech for insights into the path of interest rates. The Kospi Index, which focuses on artificial intelligence investments, dropped 1.2%. Among key market moves, S&P 500 futures remained flat at 1.03 pm Tokyo time.

Japan's Topix increased by 0.9%, Australia's S&P/ASX 200 rose by 0.4%, Hong Kong's Hang Seng climbed 0.5%, and the Shanghai Composite remained unchanged. Wall Street gauges' futures edged lower, as initial optimism over AI following Nvidia's bullish outlook diminished. The Nasdaq 100 slipped 0.1%, with Marvell Technology hurting sentiment after its earnings report.

European shares were expected to rise. Treasuries avoided further losses, with yields up two to three basis points due to inflation and US fiscal outlook concerns. Warsh will speak at the Fed's annual meeting in Jackson Hole, Wyoming, with some investors anticipating a hawkish tone. The yield on the two-year note remained at 4.23%.

The US dollar saw a slight drop. Traders hesitated to add positions before Warsh's speech, which could affect bond yields and stock markets. Investors will seek clues on the Fed's approach to balancing high inflation against a slowing economy. If Warsh lacks clarity, long-term rates could experience a larger move. US jobless claims fell, and wholesale inventories rose, but the merchandise trade deficit expanded in July to its highest level since early 2025.

Fed policymakers left the federal funds rate unchanged at 3.5% to 3.75%, with futures pricing in a quarter-point increase by the end of 2026. Warsh's speech at Jackson Hole may help reduce uncertainty-related term premiums. In Asia, the yen was around 159.40 per US dollar, following a third month of acceleration in Tokyo's key inflation gauge.

A sale of Japan's two-year government bond on Friday saw weaker demand due to speculation of central bank tightening.