Asian stocks close mostly higher, following NY and waiting for Powell

Stocks in Asia and the Pacific closed mostly higher on Friday (26), following a round of gains on Wall Street, in anticipation of a speech by the chairman of the Federal Reserve (Fed, the US central bank) that could bring signs on the trajectory of US interest rates.

In China, concerns over the current heat wave weighed on equities.

Japan’s Nikkei stock index rose 0.57% in Tokyo today to 28,641.38 points, while the Hang Seng rose 1.01% in Hong Kong to 20,170.04 points, South Korea’s Kospi gained a modest 0. 15% in Seoul, at 2,481.03 points, and the Taiex gained 0.52% in Taiwan, at 15,278.44 points.

In Oceania, the Australian stock market was in the blue for the third session in a row, also favored by a recent series of positive corporate earnings. The S&P/ASX 200 rose 0.79% in Sydney at 7,104.10 points.

Among China’s markets, however, the day was one of moderate losses, amid fears that the heat wave that afflicts the country, the worst in six decades, jeopardizes the already fragile recovery of the world’s second-largest economy.

Main Chinese stock index Shanghai Composite was down 0.31% to 3236.22 points and less comprehensive Shenzhen Composite was down 0.42% to 2146.19 points.

The dominance of risk appetite in the Asia-Pacific region came after New York stock markets closed Thursday with gains of around 1% to 1.7%, on the eve of Fed Chairman Jerome’s speech. Powell, during the American BC’s annual symposium in Jackson Hole (Wyoming).

In the most anticipated event of the week, Powell is expected to signal in the coming hours at what pace the Fed could raise rates in September and beyond.

In June and July, the US central bank raised its base rates by 75 basis points at a time. The Fed, however, has already raised the possibility of moderating the pace of adjustment, given signs of slowing inflation in the US.