- As traders await Jerome Powell's speech for clues on the interest-rate outlook, Asian stocks tracked a drop on Wall Street, while Treasury yields stabilised after further upward pressure.
- Equity markets in Japan, Australia, South Korea, and China all fell, with Hong Kong-listed technology stocks leading the way, echoing heavy selling in US tech shares on Wednesday. The Nasdaq 100 dropped 2.2%, the most in three weeks. The S&P 500's drop of more than 1% nearly erased its weekly gain. In Asian trading, futures contracts for the two US benchmarks were little changed.
- Treasuries were mostly unchanged after two-year yields, which are more sensitive to upcoming policy moves, climbed above 5% on Thursday, supporting the US dollar. Bond yields in Australia and New Zealand were slightly higher in Asian trading. The dollar advanced further against its G-10 peers, while the yen fell below 146 per dollar for the first time since Tuesday after Tokyo's inflation data came in slightly below expectations.
- Even after authorities urged the country's top financial institutions to support a struggling market, Chinese stocks fell. For the second time in three months, Morgan Stanley has reduced price targets for Chinese equity benchmarks. Meituan shares fell after the company warned that growth in its core meal delivery business would slow.
- Investors are keeping a close eye on the annual gathering of top central bankers in Jackson Hole, Wyoming - where Powell is scheduled to deliver a speech at 10:05 AM ET. The Fed chief will could use his platform to outline how officials will assess whether rates should go higher and determine when it’s time to start cutting them.
