Asian Stocks Trade Mixed Ahead Of Fed’s Jackson Hole Conference

Asian stocks traded mixed but remained broadly directionless as investors speculated whether any decisive tapering hints would emerge out of the U.S. Fed’s Jackson Hole symposium later in the week. The Fed Chief is expected to address the virtual conference in what is perceived to be a sneak peek into the Fed’s possible QE-tapering time-table. While regional benchmarks Shanghai Composite and NZX50 gained close to 0.75 percent, most other benchmarks rose only modestly. Nikkei and Hang Seng however retreated from previous close.

China’s Shanghai Composite fared comfortably to gain 0.74 percent over previous close to end trade at 3540.38. Liquidity infusion by PBoC to counter challenges to growth and reports of meetings proposed between Wall Street and Chinese Officials lifted investor sentiment.

Japan’s Nikkei 225 index stayed close to the flatline with a correction of 0.03 percent from previous close to end trading at 27,724.80. A Reuters poll which said that Japanese shares could recover to a 30-month high by the year-end, helped Nikkei hold on to most gains made early in the week, despite a challenging coronavirus situation and the impending Fed conference.

Meanwhile, the final reading of the index of leading economic indicators published by the Cabinet Office of Japan, came in at 104.1 in June, as compared to 102.6 in the previous month.

Engineering and steel business JFE Holdings was the top gainer with a rally of 5.07 percent. Within the index, only chemical manufacturer DIC Corporation and grocery retailer Seven & i Holdings declined more than 2 percent.

Korean Stock Exchange’s Kospi Index gained 8.51 points or 0.27 percent to close at 3146.81. The day’s trading range was between 3124.25 and 3161.00. Auto component maker Pusan Cast Iron company rallied 15.28 percent. Apparel and accessories maker F&F Holdings’ share price was eroded more than 10 percent in the day’s trade.

The Hang Seng Index of the Hong Kong Stock Exchange shed 66.92 points or 0.26 percent from previous close to finish trading at 25,661.00. The day’s high was at 25,949.00 and low was at 25,524.12.

The S&P ASX200 gained 29 points or 0.39 percent to close at 7,531.90, around 1.32 percent below its 52-week high of 7632.80.

Data released during the day indicated that construction output increased by 0.8 percent in June quarter versus 2.4 percent rise in previous quarter and expectation of a 2.5 percent rise.

Logistics software provider Wisetech Global surged more than 28 percent following upbeat results and outperformance of its guidance. Artificial intelligence specialist Appen Ltd rallied 8.7 percent. Financial services company Hub24 that recently released results gained 8.5 percent.

Industrial distributor Reece shed 10.8 percent. Broadcasting company Nine Entertainment corrected by 9.7 percent and construction and agricultural equipment business Seven Group Holdings lost 7.6 percent after results publication.

The NZX50 of the New Zealand Stock Exchange gained 101.62 points or 0.78 percent to close at 13,173.48. At closing levels, the index was 3.45 percent below the 52-week high of 13643.78.

Meanwhile, data released earlier in the day showed that imports jumped 34.7 percent and exports climbed 15.2 percent to result in the trade balance swing to deficit of NZD402 million for the month of July.

Agri-business company Scales Corporation gained 9.17 percent following publication of half yearly results. Retirement villages developer Summerset group that also recently released results rallied 8.70 percent. Skycity Entertainment group closely followed with gains of 6.13 percent.

Entertainment company Skynetwork Television, electricity generation company Trustpower and seafood company Sanfort, all declined little more than 2 percent.

On Tuesday, the U.S. benchmarks had closed with modest gains as sentiment lay tethered to talks of the Fed’s stimulus tapering timeline. Nasdaq-100 had closed at 15357.68, around 0.29 percent better than the previous close whereas Dow Jones Industrial Average ended at 35366.36, higher than the previous close by just 0.09 percent.

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