By Stella Qiu
SYDNEY (Multibagger) - In a cautious market, Asian shares stuttered on Friday while the dollar rebounded from one-year lows as investors await a speech by the world's most powerful central banker signaling possible rate cuts starting in September.
Japanese yen gained 0.3% to 145.77 per dollar as Bank of Japan Kazuo Ueda addressed lawmakers, with bond yields also edging up. Traders are skeptical of a BOJ rate hike in October following recent sell-offs, but Ueda maintained the bank's readiness to adjust rates based on economic performance.
Japan's core inflation accelerated for a third consecutive month, but subdued demand-driven price gains suggest no immediate need for rate hikes. Krishna Bhimavarapu of State Street Global Advisors anticipates a slowdown in inflation due to a stronger yen and energy subsidies.
MSCI's Asia-Pacific index outside Japan fell by 0.4% on Friday but is on track for a weekly gain of 0.6%. Wall Street retreated as investors await Federal Reserve Chair Jerome Powell's speech at Jackson Hole, with markets pricing in a quarter-point rate cut for September.
As Treasury yields slipped slightly on Friday, the dollar rebounded from one-year lows against the euro. Gold prices dipped 0.7% for the week after hitting a record high earlier. Wall Street futures rose between 0.2%-0.4%, while commodities are set to end the week lower.
Analysis:
Investors are cautious ahead of the central banker's speech, anticipating potential rate cuts in the U.S. and Japan. Japanese inflation data suggests no immediate need for rate hikes, impacting the yen's strength. Market sentiment remains mixed as investors await Powell's speech for clarity on future monetary policy. Overall, global markets are reacting to central bank signals and economic data, influencing currency and commodity prices.