Asian Shares Mixed In Cautious Trade Before Powell Speech

(RTTNews) - Asian stocks turned in a mixed performance on Friday as some strong U.S. economic data and hawkish comments from several Federal Reserve officials prompted traders to reduce their expectations for imminent rate cuts.

Investors await Fed Chair Jerome Powell's upcoming speech at the Jackson Hole symposium later in the day for additional clues on the timing and size of potential interest rate cuts.

Stalled Russia-Ukraine peace talks and Fed independence worries also kept investors on edge.

China's Shanghai Composite index rallied 1.45 percent to 3,825.76 as a JPMorgan report suggested the rally in onshore Chinese stocks will continue.

Chipmaker SMIC jumped more than 10 percent after Nvidia reportedly instructed component suppliers to stop production related to H20 AI chip.

Hong Kong's Hang Seng index climbed 0.93 percent to 25,339.14, fueled by a flood of mainland money.

Japanese markets ended on a flat note as hotter-than-expected core inflation data for July raised expectations of a rate hike.

The Nikkei average finished marginally higher at 42,633.29 while the broader Topix index settled 0.58 percent higher at 3,100.87, snapping a three-day losing streak.

Among the prominent gainers, SoftBank Group, Lasertec and Tokyo Electric Power all gained around 2 percent.

Seoul stocks ended higher for a second consecutive session, with chip and defense stocks leading the gains. The Kospi average jumped 0.86 percent to 3,168.73. SK Hynix surged 2.5 percent to snap a five-day losing streak.

Australian markets declined after notching another record close the previous day. The benchmark S&P/ASX 200 dropped 0.57 percent to close at 8,967.40, with consumer staple, health care and real estate stocks leading losses. The broader All Ordinaries index ended down 0.54 percent at 9,234.30.

Buy-now, pay-later provider Zip Co soared over 20 percent on solid earnings and comments surrounding a planned Nasdaq listing. Fast food chain Guzman Y Gomez slumped 18.2 percent after posting weak Australian sales growth.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 1.15 percent to 13,042.76, snapping a two-day rally.

Casino operator SkyCity Entertainment plunged 29 percent after emerging from a trading halt on capital raise announcement.

The dollar extended gains after reports emerged that the U.S. Justice Department is considering investigating Fed Governor Lisa Cook.

Gold drifted lower while oil prices rose as hopes for an imminent peace deal between Russia and Ukraine dimmed.

Overnight, U.S. stocks ended mostly lower as Walmart reported weaker than expected second quarter earnings and new data showed the number of Americans filing new applications for jobless benefits rose by the most in about three months last week, adding to signs of a slowing labor market.

On the contrary, U.S. business activity picked up pace in August and existing home sales posted a surprising rebound in July.

The S&P 500 dropped 0.4 percent to end lower for the fifth consecutive session while the tech-heavy Nasdaq Composite and the Dow both fell around 0.3 percent.