Asian markets get week off to largely positive start

AFP/APP

Hong Kong: Asian markets mostly rose on Monday, building on last week’s strong performance. Traders are focused on a key meeting of central bank chiefs, where Federal Reserve Chair Jerome Powell is set to deliver an important speech.

Investors appear to have moved past the earlier turmoil in the month, with recent data suggesting that concerns about a US recession may have been overstated. Powell’s speech at the annual Jackson Hole symposium in Wyoming, which also brings together financial leaders and policymakers, will be closely watched for any indications of future interest rate cuts.

There is growing speculation that Powell might hint at a possible rate cut as early as September. Analysts predict a modest 25 basis point reduction, though a larger 50 basis point cut would require stronger evidence of a weakening US job market.

All three main indexes on Wall Street rose on Friday, nearing the record highs achieved before their August 5 downturn. This rebound has boosted investor confidence in the US economy’s resilience against recession fears, provided the Fed decides to cut rates.

Most Asian markets gained on Monday. Hong Kong’s Hang Seng Index rose by 1.4%, while Shanghai, Sydney, Taipei, Manila, and Jakarta also saw gains. Conversely, Seoul, Singapore, and Wellington experienced declines, and Tokyo remained flat.

Gold maintained its position above $2,500 after breaching the threshold for the first time on Friday, driven by expectations of Fed rate cuts, which make the metal more attractive. Oil prices saw little movement after last week’s losses, influenced by concerns about demand as China’s economy struggles.

Additionally, investors are monitoring efforts to mediate a ceasefire between Israel and Hamas in Gaza, amid fears of a broader conflict in the oil-rich Middle East. Major oil producer Iran has threatened retaliation against Israel for last month’s killing of Hamas political leader Ismail Haniyeh in Tehran.

US Secretary of State Antony Blinken was scheduled to meet with Israeli Prime Minister Benjamin Netanyahu and other leaders on Monday to advance negotiations toward ending hostilities.

Key figures around 0230 GMT:

Tokyo – Nikkei 225: Flat at 38,047.17

Hong Kong – Hang Seng Index: Up 1.4% at 17,680.97

Shanghai – Composite: Up 0.7% at 2,898.72

Euro/dollar: Up at $1.1031 from $1.1022 on Friday

Pound/dollar: Up at $1.2950 from $1.2945

Dollar/yen: Down at 147.54 yen from 147.60 yen

Euro/pound: Up at 85.19 pence from 85.14 pence

West Texas Intermediate: Flat at $75.57 per barrel

Brent North Sea Crude: Up 0.1% at $79.73 per barrel

New York – Dow: Up 0.2% at 40,659.76 (close)

London – FTSE 100: Down 0.4% at 8,311.41 (close)