Asia-Pacific Markets React to Inflation Data and Fed Comments

Asia-Pacific markets experienced a mostly downward trend on Friday as investors braced for remarks from U.S. Federal Reserve Chairman Jerome Powell at the Jackson Hole gathering of global central bankers. In Japan, the latest inflation data revealed a headline rate of 2.8% for July, consistent with the previous month. However, the "core-core" inflation rate, which excludes fresh food and energy prices, decreased to 1.9% from 2.2% in June, indicating a potential easing in inflationary pressures. The Japanese stock market showed mixed results, with the Nikkei 225 gaining 0.4% to close at 38,364.27 and the Topix rising 0.5% to finish at 2,684.72. In contrast, South Korea's Kospi fell by 0.22% to 2,701.69, while the small-cap Kosdaq experienced a slight decline, marking its third consecutive day of losses. Australia's S&P/ASX 200 index also dipped just below the flatline, ending a 10-day winning streak. In Hong Kong, the Hang Seng index was down 0.14% during its final trading hour, while mainland China's CSI 300 index managed to reverse earlier losses, closing up 0.42% at 3,327.19. Notably, Chinese tech giant Alibaba Group announced its decision to convert its secondary listing in Hong Kong to a primary listing, establishing a dual listing in both Hong Kong and New York. In the U.S., the tech-heavy Nasdaq Composite faced the most significant decline among major indexes, dropping 1.67% as technology stocks faltered.