Asian stocks fall as traders await further signals on Fed rate cut path

• Asian stocks followed overnight declines in U.S. equity markets and retreated on Wednesday.
• JD.com sinks on Walmart stake sale report, weighing on Hong Kong’s Hang Seng index.
• China’s economic woes and the recent appreciation of the JPY also weigh on investor sentiment.

Asian equity markets are lower on Wednesday, following an overnight pullback on Wall Street that snapped an eight-day winning streak. Hong Kong’s Hang Seng Index was the worst performer, falling 1% on the day amid sharp losses at e-commerce giant JD.com, led by the report of Walmart’s stake sale.

Adding to this are concerns over slowing growth in China, which continue to weigh on investor sentiment and contribute to a drop of around 0.4% in the Shanghai Composite Index, which remains near a six-month low. In addition, Japan’s Nikkei 225 is weighed down by the recent appreciation of the Japanese Yen (JPY) and political uncertainty triggered by Japanese Prime Minister Fumio Kishida’s decision to step down. Meanwhile, Japan’s exports grew less than expected in July, while imports accelerated due to improved local demand, with the trade deficit widening to 621.84 billion yen.

Meanwhile, US equity futures were little moved in Asian trade as traders appear reluctant to open fresh positions following the recent strong rally and ahead of key event risks. The minutes of the July FOMC meeting are due later today, which, along with Federal Reserve (Fed) Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday, will be scrutinised for fresh clues on the policy path. This, in turn, will boost investor appetite for riskier assets and provide fresh impetus.