Asian Markets Stay Subdued as Investors Await Key U.S. Data

Asian equities traded cautiously on Thursday, following two straight sessions of losses on Wall Street, as investors weighed stretched valuations in U.S. tech stocks and looked ahead to a packed U.S. economic calendar that could influence the Federal Reserve’s policy path.

At 04:00 GMT, U.S. stock index futures edged slightly higher in Asian trade, providing a modest counterbalance to Wall Street’s overnight retreat.

Focus on U.S. Economic Data

Traders are bracing for a string of U.S. reports that could offer fresh direction on interest rates. Weekly jobless claims and the final reading of Q2 GDP are due later Thursday, followed by the Personal Consumption Expenditures (PCE) price index—the Fed’s preferred inflation measure—on Friday.

Markets expect these releases to clarify whether the Fed will follow through with additional rate cuts this year, after last week’s 25 bps reduction.

Regional Market Performance

Asian equities traded mixed, reflecting the cautious mood:

• Japan: The Nikkei 225 edged up 0.1%, while the TOPIX gained 0.4%.
• China: The CSI 300 climbed 0.8% and the Shanghai Composite rose modestly, supported by expectations of further stimulus from Beijing.
• Hong Kong: The Hang Seng added 0.3%.
• Australia: The S&P/ASX 200 rose 0.1%, despite lingering concerns about sticky inflation.
• Singapore: The Straits Times Index slipped 0.3%.
• South Korea: The KOSPI dipped 0.1%.
• India: Nifty 50 futures traded flat before market open.

Bank of Japan Minutes: Signs of Division

Investor attention in Japan turned to the release of the BOJ’s July meeting minutes, which revealed that some policymakers are already pushing for rate hikes.

At its latest meeting, the BOJ left short-term rates at 0.5% and announced plans to gradually reduce purchases of ETFs and REITs. However, two board members dissented, advocating for a hike to 0.75%.

The minutes reinforced expectations that the BOJ is tilting toward a more hawkish stance, though global growth concerns and political uncertainty in Japan still weigh on the outlook.