Asian Stocks Subdued as Wall Street Losses Weigh
Asian shares traded cautiously on Thursday, following overnight weakness on Wall Street. Investors stayed on the sidelines ahead of key U.S. economic data that could influence the Federal Reserve’s policy outlook.
Wall Street closed lower for a second straight session on Wednesday, led by losses in technology stocks. Concerns over high valuations and uncertainty about the Fed’s next moves weighed on sentiment.
Despite this, U.S. stock index futures edged slightly higher in Asian trading on Thursday.
U.S. Data Calendar in Focus
Investors are now waiting for a series of U.S. economic reports. Weekly jobless claims and the final estimate of second-quarter GDP are due later on Thursday. On Friday, markets will turn to the personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge.
These reports are expected to provide more clarity on whether the Fed will move forward with additional rate cuts this year.
Mixed Performance Across Asian Markets
Wall Street’s retreat cast a shadow over Asian equities, which saw choppy moves.
- Japan’s Nikkei 225 rose 0.1%, while the TOPIX index gained 0.4%.
- China’s CSI 300 advanced 0.8%, and the Shanghai Composite traded slightly higher.
- Hong Kong’s Hang Seng index added 0.3%.
- Australia’s S&P/ASX 200 inched up 0.1%.
- Singapore’s Straits Times fell 0.3%.
- South Korea’s KOSPI slipped 0.1%.
- India’s Nifty 50 futures traded largely unchanged before market open.
BOJ Minutes Signal Possible Future Rate Hikes
In Japan, investors turned their focus to the Bank of Japan’s July policy meeting minutes. The minutes revealed that some policymakers supported considering future rate hikes, underscoring divisions within the board.
At the latest meeting, the BOJ held short-term rates at 0.5% but indicated it would scale back purchases of ETFs and real estate investment trusts. Two board members dissented, calling for a hike to 0.75%.
The minutes reinforced expectations that the BOJ is gradually shifting toward a more hawkish stance, even as global growth risks remain.
