Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk
Asian Shares

The major Asia Pacific stock indexes traded mostly higher on Friday with South Korea the lone loser. The trade was choppy early in the session as investors positioned themselves ahead of a key speech by Federal Reserve Chairman Jerome Powell at 14:00 GMT.

Powell is likely to set the tone in the global stock markets for several weeks when he delivers his speech at the Jackson Hole, Wyoming central bankers’ symposium. Investors are hoping Powell presents a dovish front by signaling a series of rate cuts over the next 12 months that will show the world with clarity and conviction that Fed policymakers will do whatever it takes to stabilize the U.S. economy and prevent a global recession. Stocks could rally on this news.

If Powell continues to reiterate his “mid-term cycle” narrative then stocks could plunge.

At 07:22 GMT, Japan’s Nikkei 225 Index is trading 20710.91, up 82.90 or +0.40%. South Korea’s KOSPI is at 1948.30, down 2.71 or -0.14% and Hong Kong’s Hang Seng Index is trading 26201.06, up 152.34 or +0.58%.

In China, the Shanghai Index is at 2897.43, up 13.99 or +0.49% and in Australia, the S&P/ASX 200 Index is trading 6523.10, up 21.30 or +0.33%.

Japan-South Korea Conflict

The conflict between Japan and South Korea raised its ugly head on Friday with tensions between the two technology powerhouses escalating on Thursday after Seoul said it was cancelling an intelligence-sharing pact with Tokyo amid a bitter trade dispute.

The arrangement was designed to share information on the threat posed by North Korea and its missile and nuclear activities.

According to CNBC, “Japan’s Defense Minister Takeshi Iwaya said Friday South Korea’s decision showed it failed to appreciate the growing security threat posed by Pyongyang’s missile activities.”

The news helped drive up defense stocks in Japan and South Korea.


Trade War Chatter

On Thursday, China threatened ‘countermeasures’ against new U.S. tariffs on Chinese goods, but did not provide details on how it will respond.

“If the U.S. obstinately clings to its own way, China has no choice but to take corresponding countermeasures,” Ministry of Commerce Spokesman Gao Feng said Thursday in Mandarin, according to a CNBC translation. “The U.S. should change its wrong actions.”

He did not elaborate on what those measures might entail, but emphasized the need for fairness in trade negotiations.

RBNZ Chief Comments Boost New Zealand Dollar

The New Zealand Dollar rebounded from a three-and-a-half year low on Friday after the head of the country’s central bank said he was “pleased” with the current level of interest rates following a surprise half-point cut early this month. Investors interpreted the comment to mean the RBNZ may pass on another rate cut in September.

Reserve Bank of New Zealand Governor Adrian Orr told Bloomberg TV in Wyoming that the RBNZ’s cut to 1 percent on August 7 allowed the bank to get ahead of any economic slowdown and reduced the probability of having to do a lot more later.

“So we’re pleased with where we are,” Mr. Orr said.

Muted response to NZ Retail Sales Report

Retail sales growth stalled in the June quarter, although rising prices helped the value of sales catch up from a lull earlier in the year. Retail sales volumes rose a seasonally adjusted 0.2 percent in the June quarter from 0.7 percent in the March quarter, Stats NZ said. Economists were looking for a 0.2 percent increase.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.