Asian stocks follow Wall Street, close higher, eyes on Fed symposium

Asian stocks closed mostly higher on Thursday (25), following modest gains on Wall Street, as investors await the start of the Federal Reserve (Fed, the US central bank) symposium in Jackson Hole.

Leading gains in the region, the Hang Seng index jumped 3.63% in Hong Kong today to 19,968.38 points, boosted by technology stocks and after resuming business that was suspended for a few hours due to a typhoon alert.

Elsewhere in Asia, Japan’s Nikkei rose 0.58% in Tokyo to 28,479.01 points, South Korean Kospi rose 1.22% in Seoul to 2,477.26 points, and Taiex secured a 0. 87% in Taiwan, at 15,200.04 points.

In South Korea, it was pleased that the local central bank raised its key interest rate by 25 basis points to 2.50%, after an unexpected 50 basis point increase in July.

In mainland China, the Shanghai Composite was also in the blue, gaining 0.97% to 3,246.25 points, but the less comprehensive Shenzhen Composite was down 0.24% to 2,155.14 points amid concerns over the worst heat wave in the country in six decades.

The mostly positive tone from the Asian region came after New York stocks rose modestly yesterday, erasing some of the losses that had accumulated in anticipation of the Fed’s annual symposium in Jackson Hole (Wyoming), which starts this Thursday, but will have as its starting point speech by the president of the American BC, Jerome Powell, this Friday (26).

The big question is whether the Fed will raise interest rates by 75 basis points for the third consecutive time, in September, or whether it can opt for a more moderate adjustment of 50 basis points.

Data showed US inflation has slowed but remains at levels well above the Fed’s official 2% target.

In Oceania, the Australian stock market continued to be favored by positive balance sheets from local companies, and the S&P/ASX 200 advanced 0.71% in Sydney, at 7,048.10 points.