Stocks quiet, oil prices bounce ahead of Jackson Hole Economic Conference
Major stock indexes in Asia-Pacific shook slightly in the trading day on August 27 ahead of the Jackson Hole Economic Conference organized by the US Federal Reserve (Fed).
|The Nikkei 225 index fell 0.36% on the trading day of August 27. Photo: AFP|
In Australia, the main ASX 200 index closed down slightly at 7,488.30 points. While financial stocks recorded an increase of 0.25%, energy stocks were flat and materials stocks dropped 0.45%.
Japanese stocks saw both indexes fall. Specifically, Nikkei 225 fell 0.36% to 27,641.14 points and Topix slid 0.34% to 1,928.77 points. On the Korean market, the Kospi index closed up slightly 0.17% today to 3,133.90 points.
Meanwhile, Hong Kong’s Hang Seng index fell 0.18% at the end of trading this afternoon. In contrast, mainland China stocks were still in the green with the Shanghai Composite up 0.59% to 3,522.16 points and the Shenzhen Component up 0.15% to close at 14,436.90 points.
Major stock indexes in India also gained in the afternoon, while Singapore and Indonesia stocks struggled to gain.
Investors cautiously observe developments at the annual Jackson Hole Economic Symposium hosted by the US Federal Reserve (Fed) online on August 27 (US time). They are expecting content evaluate Fed Chairman Jerome Powell on the US economic situation in his speech at the Conference, as well as solutions to rescue the world’s largest economy from the Covid-19 pandemic.
“Fed officials are on the cusp of making big decisions (of the Fed) and some investors think Mr. Powell will provide more clues about when to decide when to scale back the stimulus package,” he said. could happen right after the Federal Open Market Committee (FOMC) meeting next month,” commented Tapas Strickland, director of economic and market research at National Australia Bank (NAB).
Analyst of National Australia Bank think that it is highly likely that the Fed will announce the reduction of the economic stimulus package before the end of this year.
Elsewhere, the Governor of the Central Bank of India told CNBC that the agency would not surprise the market with a sudden increase in interest rates. The Bank of India’s repo rate (the rate at which the central bank lends to commercial banks) is at a record low of 4%.
US stocks last night also fluctuated when 2 out of 3 main indexes broke the series of consecutive gaining sessions. The Dow Jones Industrial Average posted a four-day winning streak, while the S&P 500 and Nasdaq Composite both broke off five-day gains.
In the currency market, the US dollar index against other strong currencies gradually retreated from the level of 93.131, but still fluctuated in a relatively narrow range and stood at 92.972.
Mr. Joseph Capurso, head of international economics at Commonwealth Bank (Australia) predicted: “If Mr. Powell (Fed Chairman) hints about shrinking the US economic stimulus package right after the policy meeting in May. Next September, think the USD will jump because that move is earlier than expected by US analysts.
The Japanese yen slipped today and traded at 110.07 JPY to 1 USD, compared to 109.87 JPY/USD set previously. In contrast, the Australian dollar appreciated about 0.25% to 1 AUD “eating” $ 0.7252.
Oil prices traded by Asian hours this afternoon increased. U.S. crude oil futures jumped 1.82% to trade at $68.65, while Brent crude futures rose 1.66% to $72.25. World oil prices fell last night as new Covid-19 outbreaks raised concerns about the recovery of global oil demand.